Italian sandal firm in financial difficulty
07/12/2012
The authorities have agreed to keep paying the salaries of 14 full-time employees for the time being under a technical aspect of Italian law called ‘cassa integrazione’.
Economic advisors for the province of Lucca, Francesco Bambini and Mario Regoli, said after looking at the case: “We cannot allow a healthy company with turnover of around EUR 10 million to have its operations brought to a halt because of bank credits. We will review the systems the banks have in place to see what room for manoeuvre we can find.”
Olando Chelini, based in the town of Segromigno, is a successful company; in 2011 it made 1.2 million pairs of shoes, mostly women’s sandals. Because its production is heavily focused on summer collections, activity is more intense during the winter months than at other times of the year, while deliveries and invoicing tend to take place in the summer. Credit facilities from financial institutions have always allowed it to make its way through the peaks and troughs.
Italy’s economic situation is difficult and banking institutions are reacting by squeezing credit facilities in many areas. Olando Chelini has come close to falling victim to that situation.
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