Dynamics of failure of a company group: a case study from the recent Italian experience

Given the frequent organisational form of Italian entrepreneurship in groups of multinational companies, this paper aims to contribute to the debate on the business crisis by declining the theme of bankruptcy in the context of groups. A qualitative methodological approach has been used to explore the research questions. The case-study of the decline of an important Italian business group (Sopaf Spa) has been presented. This group, after experiencing a phase of great international development, collapsed in a profound crisis before the definitive bankruptcy, inappropriately managing financial resources and investment strategies. The case is particularly relevant for the profiles of serious social irresponsibility demonstrated by the parent holding company which not only triggered the crisis but also propagated its effects within the group, in order to compromise the performance of the other subsidiaries. This study could offer useful reflections to prevent new corporate crises.