Italy yesterday (12 February) named commissioners to oversee the administration of Ittierre SpA, the young lines division of fashion company IT Holding SpA.

The move comes after IT Holding, owner of fashion brand Gianfranco Ferre, on Monday said it would place Ittierre in administration so that it can stay in business while being restructured.

The decision was reached after the unit, which is licensed to produce and distribute ready-to-wear under the VJC Versace, Versace Sport, Just Cavalli, C'N'C Costume National and Galliano brands, ran out of funds to pay its licensors.

The Minister of Economic Development, Mr Claudio Scajola, appointed Mr Andrea Ciccoli, partner in Bain & Co, Mr Stanislao Chimenti, lawyer, and Mr Roberto Spada, certified public accountant, as commissioners.

The move puts the whole of the IT Holding business in jeopardy as its senior notes become "immediately redeemable" if a subsidiary falls into administration.