Trouble brewing for Italy's Moka coffee pot maker

The maker of Italy's iconic stove-top Moka coffee maker, Bialetti, has sought protection from creditors while it negotiates an injection of funds to shift to growth products including capsule systems. The octagonal metal pot that sends steam up through ground coffee became a paragon of Italian design as well as the preferred method for generations of Italians to make their morning expresso. While an updated model remains popular, sales slumped 12 percent in the first half of the year due to shifts in the market and financial difficulties that led to supply problems. Bialetti racked up a net loss of 15.3 million euros ($17.2 million). The company, which has closed 19 shops since July, sought court protection last week as it negotiates an urgent 17-million-euro loan from US hedge fund Och-Ziff. The loan would be part of a larger 40 million euros made available to help cope with its debt of nearly 69 million euros and restructure the firm to focus on growth segments, such as capsule and sales of its own ground coffee. The Moka was invented in 1933 by Alfonso Bialetti