The renowned luxury fashion platform is in serious trouble. It's 30 million dollars in debt.

One of the most prestigious online platforms for fashion enthusiasts has found itself in a difficult situation. LuisaViaRoma, known worldwide for its sophisticated portfolio of brands, has filed for creditor protection. What is behind the crisis of this Italian e-commerce icon?

According to information provided by Business of Fashion and Vogue Business, LuisaViaRoma has filed a motion with an Italian court requesting a 120-day protection period. During this time, the company plans to restructure and negotiate with its creditors – there are over 1,200 of them, some of whom have been waiting for payments since the spring. Among the affected companies are well-known brands, including Moschino Kids and Gianvito Rossi.

LVR's liabilities amount to €30 million. One of the first cost-cutting measures was the closure of the Milan office and relocation of the team to Florence. CEO Tommaso Maria Andorlini admitted that this was part of a broader rescue plan.

LuisaViaRoma on the verge of bankruptcy/photo: Shutterstock

Why has the platform, long considered a symbol of Italian elegance and digital entrepreneurship, found itself on the brink? There are several reasons: declining sales, excessive operating costs, and risky inventory investments. Added to this is the global slowdown in the luxury goods sector, which has dampened demand for high-end fashion.

"This is a difficult moment, but also the starting point for a new strategy. Luxury and online fashion are facing a structural crisis, and we must acknowledge our mistakes," Andorlini explains in an interview with Vogue Business.

LVR, which began as a small boutique in Florence in 1929, now derives 90% of its revenue from online sales. This has made the brand a global player, recognized by customers of Balenciaga, Saint Laurent, and Gucci.

The company's CEO emphasizes that the goal of the restructuring is to return to its roots: "We want to once again be a platform for discovering and inspiring passion for fashion. Change is difficult, but necessary."

It's difficult to predict the future of LuisaViaRoma at this point. However, one thing is certain: even luxury icons aren't immune to crises, and the way the Italian company navigates its restructuring could serve as a lesson for the entire industry.