Modes failed to stem losses and the Milan court said stop the arrangement, ordering its liquidation. In the first quarter of 2025, the luxury omnichannel platform’s ebitda was negative 5.3 million euros: the arrangement called for 2.7 million euros. Demanding the liquidation were creditors, including Tod’s and FGF Industry (Blauer), as well as the Milan prosecutor’s office.
The retail crisis
After the recent closure of Fondaco dei Tedeschi in Venice (LVMH), another player has been forced to raise the white flag. Modes was founded in 1999. It had grown to operate 30 boutiques with 300 clothing and accessories brands in the most exclusive places in Italy, Switzerland, and France. By 2023 it had reported revenues of 100 million euros, but with a profit of 80,000 euros and debts of about 40 million. At the beginning of 2024, the company had initiated applications for a protective instrument. Last May, it had applied for an arrangement with creditors as a going concern. The debts had reached 66.1 million, and under the arrangement revitalization plan, creditors would be paid percentages of between 5% and 6% of their claims.
The revocation
In the meantime, however, the accounts deteriorated. The Court of Milan has therefore revoked the arrangement and ordered the liquidation of the company. “The prerequisites and conditions are found to exist,” the court announced in documents viewed by Milano Finanza, “for the opening of the judicial liquidation in view of the serious situation of insolvency in which the debtor finds itself, without there appearing to be adequate means to cope with it. Next October 22, creditors will examine Modes’ state of liabilities.
Photo from company website: boutique in Sankt Moritz
