The struggle is real for Borsalino.
Since its inception in 1857, the celebrated hat company has created timeless designs that have been donned by famous men like Humphrey Bogart, Warren Beatty, and Gary Cooper. Its signature felt fedoras and straw panama hats continue to be sold in high-end retailers around the world, including its own shops in Italy and France.
But despite its presence and notoriety, the Italian brand is facing some serious financial problems. And we mean serious. In 2013, Borsalino reported a net loss of $23 million caused by an 11 percent drop in revenue. However, the issue isn’t due to a lack of interest in hats, but rather flawed management and distribution. Basically, the demand is there, but the company doesn’t have the monetary means to fulfill it.
"There has been an increase in demand for products,” a spokesperson told Reuters, “overseas clients are still buying and dealers are not deserting the sales campaigns."
According to reports by the Italian press, Borsalino has already filed for Chapter 11 protection; but CEO Marco Moccia insists brand executives have yet to make a final decision.
As of now, the future doesn’t look too good for the legendary company. If Borsalino does, indeed, end up closing down, at least it will be remembered as one of the greatest menswear brands of all time.
[via Reuters]
