Fashion retailerLuisaViaRomais undertaking a significant reorganization of its business operations in response to current macroeconomic headwinds and financial challenges. The Florence-based company, a pioneer in e-commerce since 1999, is reportedly planning to close its unit and office in Milan, a move that would impact 22 employees from various departments including marketing, IT, and buying. These employees would be required to relocate to the Florence headquarters.

Tommaso Maria Andorlini, LuisaViaRoma’s chief executive officer, confirmed in an exclusive interview that the Milan office closure is an integral part of a broader reorganization strategy. He emphasized the necessity for a swift and thorough rethinking of both distribution strategy and internal structure, prioritizing efficiency and a renewed focus on the core business. Andorlini believes that centralizing currently dispersed teams in Florence will rebuild cohesion, accelerate decision-making, and strengthen a shared sense of purpose, viewing the Milan unit as non-strategic and affecting company culture.

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He committed to ensuring maximum flexibility and support for employees throughout this transition, with plans to reassign them within the organization based on their skills and personal circumstances. Andorlini is scheduled to meet with trade unions to discuss the comprehensive plan, which may include resorting to"cassa integrazione,"a state-funded wage support measure, clarifying that there are no current plans for layoffs or redundancies.

Addressing persistent rumors, Andorlini dispelled speculation that the retailer was seeking a court-mediated composition with creditors, though he confirmed ongoing negotiations with financial creditors. Preliminary figures for 2024 indicate sales of 310 million euros, with current financial debt standing at 30 million euros. A capital increase was successfully completed earlier this month, the amount of which was not disclosed, underscoring the full commitment of LuisaViaRoma’s shareholders to this restructuring path and their readiness to support future growth.

Despite previous heavy investments in the U.S. market, which became its largest and experienced high double-digit growth, LuisaViaRoma has seen a dramatic downturn since March 2025. This decline is compounded by looming tariffs on imported goods, potentially reaching 30 percent, which threaten to further alienate consumers already perceiving a growing disconnect between price and actual value in fashion. Andorlini stressed that this is not merely an economic issue but a matter of perception, as consumers can easily compare global prices.

He urged synergistic action from the fashion system, Italy, and the European Union, warning that unresolved issues could force a complete reconsideration of the company's approach to the U.S. market. The challenges in the U.S. are set against a backdrop of uneven business performance in other regions like the Middle East, Russia (due to ongoing conflicts), and China (experiencing a shift towards domestic brands and retailers), following years of overconsumption and post-COVID-19 luxury spending euphoria.

As part of his strategic vision, Andorlini revealed that LuisaViaRoma has been retooling its offering and brand mix over the past year to align with the demands of a discerning clientele. This clientele, growing weary of megabrands' shift from product-centricity to experience-centricity, increasingly shows an inclination towards sustainability and social responsibility. The retailer's role, according to Andorlini, is to elevate brands and products that balance ethics, quality, and pricing to meet these evolving values. Acknowledging the significant challenges faced by Italian independent multibrand retailers, LuisaViaRoma remains committed to this business model, evident in its partnership with Camera Buyer Italia and its marketplace THEBS.com to launch a multistore online destination later this year.

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LuisaViaRoma's legacy began in 1929 with its founder, Luisa Jaquin, grandmother of the current president Andrea Panconesi. Following Style Capital’s 130 million euro investment for a 40 percent stake in 2021, Panconesi transitioned from CEO to president, while his daughter Annagreta now serves as creative director for both the website and physical stores, continuing the family's involvement in the company's evolution.