It was inevitable... the Fashion Bailout.
Italy's fashion industry is asking its government for assistance, as the global
crisis cuts into demand for designer clothes and accessories and the
sector's first credit crunch casualty goes into special administration.
Luxury brands have not been spared by the global economic turmoil and the sector has been hit by growing evidence of restrained spending even among the mega-rich.
Last week, IT Holding, owner of fashion brand Gianfranco Ferre, requested special administration for its Ittierre unit that markets & distributes goods for brands like Versace and Cavalli. The government has since appointed administrators.
Turnover for Italy's fashion industry is expected to fall 5 percent this year to $79.58 billion, according to the fashion chamber.
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