Italy Plans Fashion Bailout

The economy has hit just about every industry including fashion. Here in the States we've had bailouts of investment firms, banks and automakers but no handouts for the fashion industry. They do things a little different in Italy. The Italian minister of economic development Claudio Scajola is planning to allocate money to help Italy's fashion industry which has seen revenues tumble as consumer spending falls.

Italy has already approved a stimulus package of several billion dollars to help carmakers and the makers of domestic appliances. Italy sees fashion as part of its heritage and as the head of Italy's Chamber of Fashion Mario Boselli told WWD: "wouldn't fashion deserve the same, if not more, consideration than the furniture industry?" Michele Tronconi, president of Italy's Textile and Fashion Federation was also quoted by Bloomberg as saying there was an "urgent and dire need" for government aid.

The recent economic troubles of IT Holding SpA, owner of the Gianfranco Ferre and Just Cavalli labels has worried the industry, which employs around 800,000 people and includes around 30,000 distribution companies. The "Made in Italy" branding is big business around the world, half of the industry's revenue comes from exports.