The upper echelons of LVMH management awoke today to news of an order for a precautionary seizure of Bulgari assets worth 46 million euros pending an investigation into a tax fraud in which Bulgari is alleged to have concealed some 3 billion francs in revenue since 2006 via holding companies in the Netherlands and Ireland. The assets seized include the brand’s prestigious flagship store on the Via dei Condotti in the centre of Rome.

Although the allegations are not new (Bulgari was informed about the allegations in December last year), the sudden seizure of assets comes as a surprise even to Bulgari, which claims that the individuals mentioned in the notice of seizure, namely shareholders Paolo and Nicola Bulgari, former CEO Francesco Trapani and the company’s legal advisor Maurizio Valentini, were notified of the order only after news of it had already appeared in the press.

Bulgari issued the following statement this afternoon:

“The Company is extremely surprised by the arguments deployed […] and declares that the foreign companies at issue are real and genuine companies performing an undisputable strategic role for the Group employing about 300 employees of various profile.

“Bulgari will take all actions necessary to clarify its position before the competent authorities. The Company also wishes to point out that the news about the order appeared on the press prior to the same being notified to the individuals involved: circumstance for which explanation will be required in a timely manner from the competent authorities.”