Shoosmiths advises on landmark cross-border insolvency of La Perla

Shoosmiths has advised the UK liquidators of luxury lingerie brand La Perla on a pioneering cross-border insolvency transaction involving parallel proceedings in the UK and Italy.

The matter marks the first post-Brexit cross-border insolvency protocol between the UK and an EU member state, setting a precedent for future cooperation in multi-jurisdictional insolvency cases.

La Perla Global Management (UK) Limited entered compulsory liquidation in November 2023 following a winding-up petition by HMRC. Simultaneously, insolvency proceedings were opened in Italy over the same entity as well as other group entities. The case presented complex jurisdictional and procedural challenges, particularly in the absence of the EU Insolvency Regulation’s automatic recognition framework post-Brexit. Despite these hurdles, the joint liquidators achieved a coordinated outcome that preserved approximately 200 jobs in Italy through a joint sale process.

Shoosmiths advised on the English law aspects of the matter, including the application of the EU Cross-Border Insolvency: Court-To-Court Cooperation Principles and a complex directions application in respect of the same. The firm led negotiations on a bespoke protocol to bridge the legal and procedural gaps between the UK and Italian proceedings, which ultimately resulted in the execution of a successful transaction derived from this unique cross-border instrument. This involved close coordination with Italian counsel and the courts in both jurisdictions, ensuring a collaborative and commercially viable resolution for stakeholders.

The cross-departmental Shoosmiths team was led by Corporate Restructuring & Advisory (CR&A) Partner Lee Sennett, with support from Principal Associate Harry Rose. They were joined by Commercial Partners Dominic Murphy and Leigh Smith, along with trademark support from Niki Priest and Irem Alici reflecting the firm’s collaborative approach across practice areas. The team also worked closely with Matthew Abraham and Imogen Beltrami of South Square Chambers. 

Lee Sennett commented: “We are very pleased to have advised Quantuma, the UK liquidators, in what, so far as I am aware, is the first cross-border insolvency transaction post-Brexit involving parallel proceedings in the UK and Italy. The La Perla matter has presented novel challenges around jurisdiction, COMI, and officeholder coordination, particularly in the absence of primacy under the EU Insolvency Regulations. Our team has been at the forefront of navigating these complexities with a view to ensuring a collaborative and commercially successful outcome for stakeholders across multiple jurisdictions.”

This success reinforces Shoosmiths’ reputation for delivering commercially focused solutions in complex and multi-jurisdictional restructuring scenarios. It adds to the firm’s growing portfolio of innovative cross-border mandates. This outcome highlights the CR&A team’s ability to navigate novel jurisdictional issues and deliver strategic, collaborative results for officeholders and creditors alike.