Bankruptcy Fears Stalk Milan Fashion Week

Despite been in the middle of Milan Fashion Week some of the city's designers, including Gianfranco Ferre and Just Cavalli, are facing bankruptcy fears as a result of the global financial crisis, AFP reports.

The situation  has become so serious that sat front row at Ferre's show on Friday were three government-appointed special administrators for its owner IT Holding as it faces bankruptcy proceedings.

If It Holding does go bankrupt then it will drag down with it Ferre  and also Just Cavalli, Roberto Cavalli's lower-priced youth-oriented line, as well as Galliano, Versace Sport and Malo.

Just Cavalli has already had to cancel it's Milan show when half of the collection failed to materialise due to lack of funds. Cavalli told reporters: "It's not a time for romance. You have to be aggressive to win." He added that he had "declared war on the (financial) crisis."

Michele Tronconi, president of Italy's Textile and Fashion Federation, added that there was an "urgent and dire need" for government aid such as that given to the auto sector.

Prime Minister Silvio Berlusconi, offered hope when he last week promised to unveil some initial support measures in mid-March.