LuisaViaRoma liquidation: bids for luxury fashion retailer open until November 8

There are roughly ten days left until the close of the public auction set for LuisaViaRoma.

The Florence-based company, located at 61 Via Benedetto Varchi, is officially up for auction. The starting price is set at 18.8 million euros (20.94 million dollars) as part of a simplified liquidation arrangement managed by the Court of Florence.

Starting price for public auction is 18.83 million euros

Over the summer, the retailer was transferred through the sale of a business unit to LVR Srl, an industrial consortium led by Paolo Corinaldesi. Last July, LuisaViaRoma announced in a statement the launch of a new industrial, corporate and strategic phase. The company expressed the ambition of establishing itself as a new independent player on the international fashion stage.

“The acquisition of the business unit, promoted by Ato Spa and approved by the Court of Florence, led to the creation of LVR Srl, a new operating company backed by an Italian capital group bringing together entrepreneurs and representatives of some of the country's most prominent industrial families,” the statement explained.

“The transaction begins with the signing of a lease agreement for the business unit, allowing LVR Srl to immediately assume operational management of the business and ensure its continuity. This phase represents the first step in a process that provides for the subsequent definitive acquisition of the business unit upon completion of the authorisation and judicial procedures,” management emphasised.

In July, it was also announced that Corinaldesi would assume the role of executive chairman, while Tommaso Maria Andorlini would continue as chief executive officer (CEO).

Interested parties have until November 8 to submit expressions of interest

The new company chaired by Corinaldesi has submitted a binding offer to acquire the business. The binding commitment provides for the final purchase by November 30. However, as LuisaViaRoma is undergoing a court-managed simplified liquidation arrangement, Italian law prohibits a direct private sale.

For this reason, a public auction has been called. The starting price is the offer made by LVR Srl, which stands at 18,830,495.34 euros. Interested parties will have until 11:59pm CET on November 8 to submit irrevocable expressions of interest. If no improved offers from third parties are received by the deadline, Corinaldesi's consortium will receive the green light for the final acquisition. Otherwise, a competitive bidding process will take place on November 12 among those who submitted offers. The minimum bid increment in the event of a tender has been set at 500,000 euros.

Business unit under offer

The business unit under offer comprises the business complex currently leased. It includes all intellectual property rights; the IT system consisting of hardware, proprietary software and licensed software; communication equipment and any other connected apparatus; and third-party services. It also encompasses networks; platforms; e-commerce platforms; peripheral devices; and associated documentation, whether owned or used by LVR Srl as part of its operations, including e-commerce activities.

Furthermore, it includes know-how; all movable assets; plant; equipment; furnishings; and machinery instrumental to the operation of the business. Inventory; customer and supplier databases; commercial and digital goodwill; administrative authorisations, licences and concessions; contracts for the supply of goods and services; and all related insurance and lease agreements are also included.

The offer also covers utility contracts for the properties of the relevant local units and any other pending contracts necessary for the continuation of the business. Finally, it includes the wholly-owned (100 percent) stake held by LVR Srl in FFW Srl and the employment contracts in place at the date of the actual transfer.