Their singing the "glory" of the new arm chair is utterly representative of their denial. They're going to "grow" the company into success, on behalf of their Italian union "patrons," instead of immediately rightsizing the cost structure. It's almost as if the people that work at the company OWN it, 100%. But that's absurd. The capital of the company is owned by its shareholders.
The scary thing is that, with Pasquale owning 60%, and his seemingly, as a 75 or so year old, being so worried and focused on his legacy, and as someone who "cares about people," he just seems willing to me, to take the company "off the cliff," on behalf of being a "hero" for his fellow countrymen. But their wage demands are outrageous, and that is evidenced in Natuzzi's HORRENDOUS financial results. The old days are OVER....but Natuzzi is TINKERING at the margins....head firmly buried in the sand. I've rarely seen a company so steeped in DENIAL.
There is simply NO mandate to be producing any furniture in Italy any more. That's the reality that the company should be confronting. Insanely, they are talking, instead, about moving production from Romania TO Italy. That's CRAZY!!
If Pasquale Natuzzi wants to continue with this cowardice, and this nonsense, and 7 years in a row of financial losses, let him do it on his own dime, and TAKE THE COMPANY PRIVATE. Then he can burn through all the remaining equity for all I care, drive the company into the ground, and let a Chinese outfit pick up the carcass out of bankruptcy. It seems, in Mr. Natuzzi's mind, perversely, that that is how he plans to "protect his legacy." (Apparently, the pressures from Italian unions are just insurmountable, psychologically, when someone like Mr. Natuzzi is so concerned about seeing himself as "caring and concerned," and a "good man.")
These situations are tragic. It is exactly the thing that drove General Motors into bankruptcy.
Why are they pandering to the Italian unions? Why are they talking about moving more production TO Italy, instead of moving production OUT of Italy? If Natuzzi's competitors, operating in the same region of Italy, are paying a FRACTION of Natuzzi's wage costs, why isn't Natuzzi talking about IMMEDIATE 10-20% wage cuts for Italian workers?
I'm convinced this management team doesn't have what it takes. Pasquale is operating this company as a PUBLIC CHARITY. He's afraid of hurting the FEELINGS of Italian unions. They totally ignore, in their earnings press release, the WHITE ELEPHANT in the room. That is beyond disturbing; it represents a breach of fiduciary duty to the outside shareholders!
They are focused on coming out with new products, as if this is going to be their salvation and deliverance, when the real problem that Natuzzi has is a COST problem, first and foremost. And they remain in STARK DENIAL over that problem.
There is NO business mandate for Natuzzi to be producing ANY furniture in Italy. (Sales of their high end Natuzzi Italia brand continue to collapse in Italy itself...because it's overpriced!!)) There is no obligation to disgusting and repulsive conceps such as "economic nationalism," or "nativism," when you are a GLOBAL company, and a GLOBAL brand. This attitude of NTZ management is totally "see-through".....and the parochial loyalties are a 100% betrayal of management's obligations as fiduciaries to outside shareholders.
They refuse to see the writing on the wall, and, as it stands now, it's going to result in the eventual destruction of a once great brand. The fact that the Natuzzi familiy owns 60% of the company shows the horrendous situation where you have a controlled entity....where the controlling person has his head buried in the sand, is living totally in in the glory of the past...and is afraid to STAND UP TO PEOPLE.
I feel betrayed as a shareholder....and as a 3% owner of the company. Management is craven.