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Italian hat company Borsalino faces liquidation

Italian hat maker Borsalino Giuseppe e Fratello Spa is facing liquidation after a court in Alessandria, Italy, rejected the company's request for court protection from creditors, Reuters reported Dec. 18, citing Franco Armosino, a local trade union leader.

Borsalino reportedly owed creditors about €18 million.

According to the report, the company underwent financial troubles in 2013 but returned to profit in 2015 after Haeres Equita, a consortium headed by Swiss-Italian financier Philippe Camperio, invested about €10 million to relaunch the business.

The news agency added that Marco Marenco, a former majority owner of the company, was arrested in April 2015 on suspicion of a financial crime.

Two officials have been appointed by the court to wind down the company to pay back creditors, the report said, but the decision will not stop production at Borsalino.

Camperio said in a statement that the bankruptcy "has nothing to do with Haeres Equita's management" but that it will continue to find solutions to preserve the brand, Reuters said.