Italian luxury yacht manufacturer The Italian Sea Group is in serious trouble after the discovery of large-scale financial fraud. The company, of which businessman Marc Coucke is the second largest shareholder, is trying to stay afloat as best it can.
The company’s former management allegedly artificially disguised the accounting to hide huge budget overruns. The current CEO and majority shareholder, Giovanni Costantino (62), has meanwhile filed a complaint against his predecessors for alleged fraud.
The consequences are serious: the company suddenly finds itself with a debt of 133 million euros. In February, Costantino even had to inject 25 million euros of his own funds to pay salaries and avoid a shutdown of production. The company then requested legal protection from the Florence court, which appointed an independent expert.
From 26 million to 6 million euros in value
At the Milan Stock Exchange, the sanction was severe. The stock lost more than 40% of its value in a single day. For Coucke, who invested 26 million euros in 2021 via his holding company Alychlo, this translates into a heavy unrealized capital loss, writes Sudinfo.
His stake in the company is now only worth around 6 million euros. The designer Giorgio Armani, who owns around 5% of the shares, also sees the value of his investment decline sharply. Despite the brand’s glamorous image, notably thanks to collaborations with well-known names, the financial reality is harsh.
The future of The Italian Sea Group now depends on ongoing legal and financial procedures. It remains to be seen whether the company will be able to restructure its debt and regain stability. For Coucke and the other shareholders, a period of waiting begins, in the hope that the ship does not sink definitively.