Leonardo Maria Del Vecchio writes to the auditors: launch an investigation into Delfin and the board

Conflicts of interest on the Board

Finally, considerable attention is devoted to the conflict of interest involving certain directors who are party to legal proceedings against the family’s heirs and legatees. The most significant case concerns Professor Mario Notari, who, on the one hand, has brought a claim against heirs and legatees for the payment of professional fees and, on the other, is himself the subject of proceedings, initiated before the Luxembourg court, seeking his removal from the Board for just cause. Finally, the letter states that Notari is the notary who drew up the deed of renunciation of Nicoletta Zampillo’s usufruct in favour of Rocco Basilico, a deed which is now at the centre of serious legal disputes, including those raised by Zampillo herself.

Concerns have also been raised regarding Romolo Bardin’s position, as he is said to hold overlapping roles at Delfin and Cdv Holdings, the vehicle linked to Claudio Del Vecchio, with calls for clarification as to whether the Board has adequately monitored Bardin’s dual role in cases where the interests of the two entities might conflict.

Added to this is a second development, relating to Delfin’s stake in C.D. Holding, the company through which the family holding company acquired a stake in Ceramica Dolomite, the historic Belluno-based ceramics brand formerly known as Ideal Standard, which was saved from closure in 2022 thanks to the intervention of a number of private shareholders, including Delfin, and Invitalia. As has emerged in recent days, at the new crisis meeting convened at the Ministry of Enterprise, the company continues to navigate a very delicate situation, with losses having almost doubled in 2024, reaching 19.4 million. According to the entrepreneur’s account, Delfin joined in 2022 as one of the private founding shareholders, contributing 2 million euros for a 25 per cent stake, but in the following years there were repeated requests for fresh capital and a gradual deterioration in results compared to the original plan. The point raised by Leonardo Maria is that, in light of this trend, Delfin’s shareholders never received adequate information regarding commitments made, authorisations granted and the procedures for monitoring the investment.

The exhibition at Brooks Brothers

Finally, Delfin’s legal exposure in the United States relating to Brooks Brothers – about which, as the head of LMDV Capital emphasises, he was never informed. According to public sources, including documents filed in the Chapter 11 proceedings concerning Brooks Brothers, the letter states, it appears that Delfin had been party to an agreement amongst shareholders of the historic American fashion house since 2016 and held a stake of approximately 7.5 per cent of Class A equity at the time of the company’s bankruptcy, which was declared in 2020.

The same sources suggest that, following the restructuring and the subsequent legal dispute, Delfin is still a defendant in at least one pending case in the United States. Leonardo Maria Del Vecchio states that he has never been informed either of this exposure or of any provisions or contingent liabilities recorded in Delfin’s accounts in relation to this matter.