The founders of Manhattan members’ club Core Club are locked in a legal battle in Italy to regain control of their unopened Milan site from distressed-debt firm Reinvest. Seven years after selling memberships to Milan’s wealthy elite, the club accuses Reinvest of bad faith, claiming the firm initially pledged to repay debts and finance renovations before stripping the club of its property rights. Founded by Jennie and Dangene Enterprise, Core Club secured a 40-year lease on a 4,000 sq m building near Via Monte Napoleone in 2019, raising millions from 700 members—including Italian dynasties like the Moratti and Del Vecchio families—through entry fees of €4,000 to €50,000.
Renovation costs soared past €25mn during the pandemic, and by 2025 the founders handed the leaseholding company to Reinvest for €1, in exchange for debt repayment of over €7.5mn. Reinvest claims Core failed to provide financial guarantees and has since converted the entity into a securitisation vehicle, removing “Core” from its name. The club’s New York landlord, Michael Shvo, was also sued by the Enterprises over alleged funding commitments—a case dismissed in 2024.
The Milan property’s landlord is a Catholic institution leasing at €1.5mn annually, well below market rate.
Source: Financial Times Companies · Summarized by HeadlinesBriefing