The Troubled Strategy of an LVMH Subsidiary in Marrakech

The Tuscan actor Nuti Ivo is going through a turbulent period in Morocco. His historic subsidiary, Shihara, located in the Sidi Ghanem industrial zone in Marrakech, has been placed in receivership. This procedure temporarily freezes the claims of several local suppliers who are now demanding the payment of tens of millions of dirhams in unpaid bills. This financial failure is weakening the group’s image with its Moroccan partners, reports Challenge.

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This financial shipwreck is in stark contrast to the ambitions displayed by Nuti Ivo. The group has committed to the Moroccan state to invest more than 130 million dirhams in the creation of a new modern tannery. This site is expected to generate an annual turnover of 300 million dirhams, 90% of which is destined for export. In the long term, the unit plans to produce 11,500 skins per day and create 265 direct jobs.

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The attitude of the Italian firm, which came under the wing of the global giant LVMH in 2024, is now causing incomprehension. Observers are questioning the appropriateness of launching this new venture without first having cleaned up Shihara’s financial situation. This strategic paradox raises questions about the management of the European leader in tanning, which is prioritizing colossal new investments while leaving its historic subsidiary in great difficulty.