Bally's Italian units enter judicial liquidation as Swiss restructuring extends to February 2027

Bally's Italian operations have entered judicial liquidation, breaking apart the Swiss footwear house's presence in its key fashion market. Bally Italia Srl, which ran the Milan flagship, was placed into judicial liquidation on 25 August, and Bally Studio Srl followed in July, according to paperwork reviewed by WWD.

The Milan boutique on Via Montenapoleone has already been shuttered after a Florence court ruled Bally could not keep operating it. A liquidation sale of the store's inventory began on Friday, with more than 100 people through the door by 1 p.m. CET and a further 30 queued outside.

Shoppers lined up for discounted footwear, handbags and leather goods from the brand known since 1851 for its Swiss craftsmanship in those same categories. The court allowed one Italian store to keep trading: the outlet at McArthurGlen Serravalle Designer Outlet in Piedmont, also operated by Bally Italia Srl.

What happened to the Italian entities

Bally Studio Srl ran the brand's local headquarters and offices. Its closure and the chain of liquidations follow the May shutdown of the production site at Lastra a Signa on the outskirts of Florence, where the last 28 employees were let go. The plant had employed about 55 people through the end of 2025.

The Swiss legal entity, Bally Schuhfabriken GmbH, has been under a court-mediated procedure in Switzerland known as moratoria concordataria since June. It has won an extension until the end of February 2027, when a court in Lugano is due to decide whether it qualifies for a continuity and debt-restructuring process or for liquidation.

A Regent spokesperson would not comment further on the proceedings. The investment firm acquired Bally from JAB in 2024, and its business plan has yet to come to fruition two years on. An anonymous industry source called the governance a Chinese box-like structure of entities being emptied of value one at a time.

That source alleged the end goal is establishing a licensing business model. Regent confirmed on Friday that the Bally trademark and related intellectual property were sold, not simply transferred, to the American company Aare LLC before the moratoria concordataria procedure began.

Regent's account of the trademark sale

The spokesperson said the sale was for value at a material purchase price set at fair market value, supported by an independent valuation from one of the world's leading accounting firms. Proceeds went to the Swiss company and funded the business through the moratorium. A Lugano magistrate's court had reportedly tried to halt that sale.

The purchaser also granted the court-appointed administrator a licence so the Swiss company can keep selling Bally products. Certain matters relating to Swiss trademark registrations remain pending before the Swiss authorities, the spokesperson added.

Regent moved Bally's registered headquarters from the Canton of Ticino to the Canton of Zug last summer to benefit from a more favourable tax regime, sources told WWD in August. The workforce has been significantly reduced since the takeover, with the bulk of remaining staff split between China and Switzerland.

Switzerland's tally shrank further after September layoffs. Bally had 1,500 employees worldwide at the time of the sale to Regent. The investment firm declined to give specifics on current headcount on Friday.

Leadership churn under Regent

The house has been through a churn of leadership under Regent. Chief executive Nicolas Girotto left in October 2024, succeeded by general manager Ennio Fontana. Creative director Simone Bellotti, who joined in May 2023, departed in January 2025 for Jil Sander, and the in-house team has designed collections since.

Mario Grauso, a veteran fashion and retail executive who joined Regent as operating partner of its fashion and luxury group in 2025, took leadership of Bally last February as chief creative officer with oversight of operations. Fontana exited as a result, and Grauso oversaw the relocation of the flagship to the now-shuttered Montenapoleone address.

Grauso also holds oversight of DIM, another Regent portfolio company, and is said to remain in his role. Bally, whose ready-to-wear, shoes, bags and accessories collections span men and women, was founded in 1851 by brothers Carl Franz and Fritz Bally.

Regent reiterated that it acquired Bally because it believes in the house and wants it to thrive as a luxury brand for years to come. It said the period has been hard on many people who care about Bally, and that it is working with stakeholders on a restructuring aimed at the business's long-term future.

The firm asked that Bally be judged on what it becomes rather than on press coverage of a difficult season. Leadership has turned over repeatedly in under two years, and the Swiss court's February 2027 ruling will show whether the Swiss operations follow the Italian entities.

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Images: Bally; Bally Men's Fall 2026 Ready-to-Wear Collection at Milan Men's Fashion Week Courtesy of Bally