Grotto SpA-owned Gas Jeans is avoiding bankruptcy and keeping 140 of its remaining staff, thanks to Italian investment holding company Milano 1984 SpA, which recently acquired the company.
On May 6, the Court of Vicenza issued its final ruling on the acquisition, declaring Milano 1984 SpA the owner of Grotto SpA and its subsidiaries for an undisclosed amount.
Andrea Citterio, the CEO and entrepreneur who leads Milano 1984 SpA, told Fashion United that, in addition to Grotto SpA, he also acquired the historic Gas Jeans factory store in Chiuppano, Vicenza, to “show that we want to continue to maintain the business where it was born.” He plans to relaunch the iconic Gas Jeans brand, which was established in 1984 and quickly became an iconic premium jeanswear brand.
Last fall, Gas Jeans neared bankruptcy and laid off 200 workers. At the time, it had accrued 80 million euros ($84 million) in losses, according to reports.
Bankruptcies and near-bankruptcies don’t necessarily mean the end for denim brands, as demonstrated by Diesel’s latest rebound. Though the brand’s U.S. division filed for bankruptcy just three years ago, it’s now worn by some of today’s top fashion influencers and earning high rankings in top brands lists. The creative director for high-end streetwear brand Y/Project, Glenn Martens was appointed Diesel’s creative director in October 2020 and spearheaded its rebrand. Just last month, Diesel was featured in the Lyst Index’s top 20 for the first time, climbing 31 positions from last quarter, where it ranked 46. Its iconic 1956 “pantaboots,” which feature faded jeans that flow into heeled boots, earned the 10th place in the Lyst Index’s ranking of hottest women’s products.
After filing for bankruptcy in April 2020, True Religion also underwent a successful rebrand, teaming with streetwear leader Supreme on a collection of early ’00s-inspired gear to pay homage to its heyday in the Y2K era. It has also worked with rappers Chief Keef and 2 Chainz on nostalgia-heavy collections.