Garmont International Srl says €1 million it raised in an equity sale last week will help fund a three-year turn-around plan that hinges on its success in the United States.
Garmont announced Aug. 31 that it had raised €1 million by selling a 25 percent equity stake to a regional economic development group that specializes in helping companies from the Italy’s Venetian region turn around their operations.
The investment marks the most recent investment in an “industrial restart” by Veneto Sviluppo Spa, a public-private partnership that invests alongside management and other shareholders to restructure, relaunch and reposition medium-sized companies critical to preserving brands, technology, work skills and jobs across the Venetian region of Italy.
Founded in 1964, Garmont is known worldwide for making performance footwear for mountaineering, hiking and other outdoor pursuits.
However the company has been restructuring since 2012 when it sought protection from creditors through the Italian equivalent of a Chapter 11 bankruptcy proceeding. After shedding its ski boot manufacturing and other assets, Garmont was taken over by Pierangelo Bressan, an industrialist with experience in the premium outdoor clothing industry.
Bressan is now executing a three-year business plan that calls for stepping up exports by opening up new markets through distributors and subsidiaries. Late last year, Garmont hired Bill Dodge away from Wolverine World Wide to establish a North American subsidiary in New Hampshire.
“We’re proud to have ended our first financial year (December 31, 2014) with a positive financial result and to have already reached our 2015 turnover [sales] objective, considering our orders in house for delivery within end of the year,” said Bressan, president of Garmont International Srl. “The opening of a North American subsidiary and its three-year development plan will be decisive for the relaunch of our brand. These new financial resources from Veneto Sviluppo will support this important effort.”
