t’s been a busy few weeks for fashion prosecutions in Milan! WWD have reported that members of the Burani handbag dynasty have been jailed by a Milanese Court for the fraudulent bankruptcy of the Mariella Burani Fashion Group and its parent company, Burani Designer Holding.
The news comes just days after former model Dong Mei was sentenced by a Milanese court for her part in a money laundering scheme. Walter and Giovanni Burani have each been sentenced to six years in jail.
The husband and son of Maiella Burani had served as senior members on the board of the exclusive apparel and accessories conglomerate. The duo aggressively expanded the firm at the beginning of the noughts, piling up debts of more than $600 million. In 2010, Italy’s Ministry of Economic Development granted bankruptcy protection to MBFG and appointed three administrators to manage the group.
The Buranis may find themselves in good company. In recent years the Italian authorities have been targeting a number of high profile Italian fashion houses in relation to financial crime. Dolce & Gabbana were also accused of evading €420 million in taxes when they sold their brands, Dolce & Gabbana and D&G, to their own Luxembourg-based company, Gado Srl. The trial is currently underway in Milan.
Luxury jewellery company Bulgari has also been accused of evading tax payments of more than €70 million (£57 million). The charges allege that the brand redirected some of its revenues to Luxembourg and Ireland through holding companies, rather than declaring profits in Italy. Bulgari has denied any wrong-doing.
Wigsandgowns are expecting prison uniforms to get a whole lot more fashionable…