Bally faces uncertain future as Swiss shoe firm granted debt relief, closes production

The once-proud Swiss shoe and fashion firm Bally is in a precarious financial state, facing a provisional debt moratorium granted by the Zug Cantonal Court. The company, with a history spanning 175 years, has been passed between financial investors for decades, but its current situation appears more dire than previous crises.

The latest blow comes with the closure of its final production facility in Caslano, Ticino. The last employees there received their termination notices in May, with their employment ending in August. While Bally had already outsourced much of its shoe production, this marks the end of its manufacturing presence in Switzerland. The company has also closed its stores across Switzerland.

A trustee, Transliq AG, will now oversee Bally's management, assessing whether a restructuring or a settlement with creditors is possible, or if bankruptcy is inevitable. The fate of the remaining employees, who are entitled to a severance package, is also uncertain, with reports indicating delayed payments of their May wages.