Simorra buys insolvent Brava Fabrics for €100,000

What's the deal? Spanish womenswear company Simorra has acquired Barcelona-based fashion brand Brava FabricsDealroom has a profile for this one. Try Dealroom → for €100,000 plus taxes. The deal was awarded by Barcelona's Commercial Court Number 5, which had placed Brava Fabrics in insolvency proceedings.

What's included? Simorra takes three of Brava Fabrics' stores — in Barcelona, Madrid, and Palma de Mallorca — plus roughly 20,000 garments still in stock, valued at about €350,000. Up to seven Brava Fabrics employees working at those locations will stay on.

Why now? The court awarded the company to Simorra on Thursday, after invalidating another offer that had been put on the table. Brava Fabrics was in a creditors' process, with its assets going to the highest cleared bid.

What's left out? The deal excludes a second Barcelona store and another in San Sebastián. Remaining assets will be liquidated in the coming weeks, with proceeds covering lease terminations on the excluded stores and the Barcelona headquarters.

The signal: Distressed-asset deals let established players absorb stock, stores, and staff from struggling brands at a fraction of their value. For €100,000, Simorra picks up a retail footprint and inventory worth far more on paper.

Read more: modaes.com

Image credit: Artem Beliaikin