MILAN — Fashion retailers aren’t immune to the havoc being wrought by the current macroeconomic headwinds and LuisaViaRoma, among them, is looking at streamlining business operations to overcome financial hurdles. 

According to Italian media reports, the retailer, a pioneer of e-commerce since 1999 and based in Florence, is planning to shut down its unit and office in Milan. 

The move would affect 22 workers required to relocate to Florence, trade unions Filcams Cgil said.

In an exclusive interview with WWD on Saturday, LuisaViaRoma chief executive officer Tommaso Maria Andorlini set the record straight. 

“The closure of LuisaViaRoma’s Milan office is part of a broader reorganization strategy,” he said. “This moment demands a swift and thorough rethinking of both our distribution strategy and internal structure. Efficiency and a renewed focus on our core business have become essential. Centralizing currently dispersed teams at our Florence headquarters will help us rebuild cohesion, speed up decision-making, and strengthen our sense of shared purpose.”

The 22 employees in Milan work in different departments including marketing, IT, and buying, among others. 

Andorlini believes that the Milan unit was non-strategic. 

“It was as if part of the company’s talent and know-how was operating from a subsidiary and this affected company culture,” he said. “Reuniting remote teams will foster belonging and alignment. We will ensure maximum flexibility to support our employees throughout this transition.”

The executive will meet trade unions on Wednesday, submitting the broader plan for the entire company’s workforce, which, he said may entail resorting to the “cassa integrazione,” a state-funded wage support measure. 

There are no plans for layoffs or redundancies for the time being, Andorlini said. 

“We’ve approached this streamlining process with great responsibility, committed to maintaining tangible ties with the individuals who contribute to our success every day. Employees from the Milan office will be reassigned within the organization, with consideration for their skills, personal circumstances, and individual journeys,” he said. “We hope everyone is willing to row in the same direction,” he said about the meeting with unions. 

The CEO also squelched rumors that for the past year have recurred frequently that the retailer was seeking to enter a court-mediated composition with creditor procedure. It is however in negotiation with financial creditors.

According to preliminary figures, the retailer logged sales of 310 million euros in 2024. 

Financial debt currently stands at 30 million euros. A capital increase was successfully completed this month, the executive said, while declining to disclose its amount. 

“The shareholders of LuisaViaRoma are fully committed to this [restructuring] path…. the investor group stands ready to support the company’s future growth, a future we all believe in,” Andorlini said. “We also believe that it is precisely in uncertain moments like this – of uncertainty but also opportunity – that vision and resolve can forge a stronger, more relevant, and future-proof path ahead for the company.”

In July last year LuisaViaRoma opened its second brick-and-mortar unit in New York’s NoHo, flanking the storied boutique on Florence’s Via Roma. 

Andorlini said that in the 18 months prior the company had heavily invested in the U.S. market, which had become its largest, growing in the high double-digit range.  

In light of geopolitical instability and dented consumer confidence, the onset of 2025 has seen a mixed performance in the country. 

Looming tariffs on imported goods to as much as 30 percent could further impact business in the region.

“Until February 2025, the U.S. was our largest market, registering double-digit growth. But from March, and more sharply from April, we’ve seen a sudden, dramatic downturn. The introduction of tariffs comes amid a broader crisis of confidence in fashion pricing. Consumers have long started to sense a growing disconnect between price and actual value. The added cost from U.S. duties risks further alienating them,” Andorlini explained. 

“This is not merely an economic issue — it’s a matter of perception. Today’s consumers compare prices globally with ease. When geographic price gaps feel unjustified, they breed uncertainty and mistrust. If this situation isn’t resolved quickly, we will be forced to reconsider our entire approach to the U.S. market,” he continued, urging the fashion system, Italy and the European Union to act synergistically. 

Following years of overconsumption and post-COVID-19 luxury spending euphoria, the U.S. tariff threats come as other regions experience uneven business performances, including the Middle East and Russia, plagued by ongoing conflicts, as well as China, in light of a progressive shift toward domestic brands and retailers. 

As part of his strategic vision, Andorlini said that the retailer has been retooling its offering and brand mix to align with demand of a discerning clientele growing tired of megabrands’ progressive shift from product- to experience-centricity. 

“LuisaViaRoma recognized this shift a year ago and began refining its brand mix to make it more selective and coherent. Our audience has consistently shown inclination to sustainability and social responsibility. In this landscape, we believe our role is to elevate brands and products that align with these values, with particular attention to balancing ethics, quality, and pricing,” the CEO explained.

Acknowledging that Italian independent multibrand retailers are facing similar or often bigger challenges, Andorlini reiterated his commitment to the business model. 

As reported, LuisaViaRoma is partnering with the Camera Buyer Italia and its marketplace THEBS.com to create a multistore online destination to be launched later this year. 

LuisaViaRoma was established by president Luisa Jaquin — the grandmother of the retailer’s president Andrea Panconesi — who planted the seeds of the family company’s success by opening the concept store in 1929.

Following Style Capital’s investment of 130 million euros to acquire a 40 percent stake in the retailer in 2021, Panconesi left his post as CEO — now held by Andorlini, who succeeded Yoox veteran Alessandra Rossi — to be president of the company, while his daughter Annagreta serves as creative director of both the website and physical stores.