Bertone looking for buyers as bankruptcy nears

Italian design house Bertone has confirmed it entered bankruptcy proceedings in Italy, The Telegraph reports, amid recent reports that it laid off a significant percentage of its workforce. A spokesperson for the struggling company told The Telegraph that the company is searching for a buyer.

"The problem is many debts and very high costs. At the moment, everything is blocked,” a Bertone spokesperson said. "People haven't been coming to work for a month and a half now."

The company's fate should be known by the end of April. The bankruptcy court handling the case will either close the company for good, moving it toward liquidation, or it will announce a buyout deal, with the new owner agreeing to take on Bertone's debts and assets.

The spokesperson added that the court is evaluating buyout proposals from several foreign companies interested in the design consultancy, though it did not give names. It's fairly normal in bankruptcy proceedings for potential buyers to remain confidential; in most countries, potential buyers either actively advertise their interest or try to remain completely anonymous. The latest rumor suggests that one of the companies interested in Bertone might be Turkish.

The recent financial struggles follow a large departure of designers at the end of 2013 who have now formed their own firm, as well as claims of unpaid bills from suppliers. The 102-year-old company has approached bankruptcy a number of times in recent years, starting in 2007, with a number of market analysts pointing out that the business model of longtime design houses is no longer viable. Indeed, Bertone has ridden a boom-bust cycle like its still-independent contemporaries, while other design houses have been bought out by automakers.

Bertone is responsible for some of the most celebrated cars of the 20th century, such as the Lamborghini Countach and the Lancia Stratos. Its bread and butter during the last 40 years has been engineering development and designs of mass-produced family cars, like the Citro

By Jay Ramey