<SEC-DOCUMENT>0000950123-11-084685.txt : 20111129
<SEC-HEADER>0000950123-11-084685.hdr.sgml : 20111129
<ACCEPTANCE-DATETIME>20110915125031
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-11-084685
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110915

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATUZZI S P A
		CENTRAL INDEX KEY:			0000900391
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD FURNITURE [2510]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		VIA IAZZITIELLO 47
		CITY:			SANTERAMO ITALY
		STATE:			L6
		ZIP:			70029

	MAIL ADDRESS:	
		STREET 1:		VIA IAZZITIELLO 47
		CITY:			SANTERAMO ITALTY
		STATE:			L6
		ZIP:			999999999

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NATUZZI INDUSTRIES SPA
		DATE OF NAME CHANGE:	19950823
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<HTML>
<HEAD>
<TITLE>Correspondence</TITLE>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;Letterhead of Natuzzi S.p.A.&#093;
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 10pt">September&nbsp;15, 2011
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Rufus Decker<BR>
Accounting Branch Chief<BR>
Division of Corporation Finance<BR>
U.S. Securities and Exchange Commission<BR>
450 Fifth Street, N.W.<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Re:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Natuzzi S.p.A.<br>
Form&nbsp;20-F for the Fiscal Year Ended December&nbsp;31, 2010<br>
Filed June&nbsp;30, 2011<br>
File No.&nbsp;1-11854</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dear Mr.&nbsp;Decker:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We refer to your letter setting forth some comments from the Staff (the &#147;<U>Staff</U>&#148;) of
the Division of Corporation Finance of the U.S. Securities and Exchange Commission (the
&#147;<U>SEC</U>&#148;) concerning the Annual Report on Form 20-F for the fiscal year ended December&nbsp;31,
2010 (the &#147;<U>2010 Form&nbsp;20-F</U>&#148;) of Natuzzi S.p.A. (the &#147;<U>Company</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">This letter sets forth the Company&#146;s response to the Staff&#146;s comments. For ease of reference,
we have included the Staff&#146;s comments in italicized text prior to each response.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Form&nbsp;20-F for the Fiscal Year Ended December&nbsp;31, 2010</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>General</U>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>1.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Where a comment below requests additional disclosures or other revisions to be made,
please show us in your supplemental response what the revisions will look like. Some of our
comments refer to US GAAP literature. If your accounting under Italian GAAP differs from
your accounting under US GAAP, please also show us the additional disclosures that will be
included in your US GAAP reconciliation footnote. With the exception of the comments below
that specifically request an amendment, all other revisions may be included in your future
filings.</I></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Response to Comment 1:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Company acknowledges the Staff&#146;s comment and, where a comment requests additional
disclosures or other revisions, we have provided in our supplemental response what the revisions
will look like, including, where applicable, the additional disclosures to be included in our US
GAAP reconciliation footnote. With the exception of Comment 5, which specifically requests an
amendment to the 2010 Form 20-F, we will include such revisions in our future filings, beginning
with our Annual Report on Form 20-F for the fiscal year ended December&nbsp;31, 2011 (the &#147;<U>2011 Form
20-F</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Item&nbsp;5. Operating and Financial Review and Prospects, page 34 </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Critical Accounting Policies, page 34 </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Recoverability of Long-lived Assets Including Goodwill and Other Intangible Assets, page 35
</U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that you have reported a net loss for each of the years ended December&nbsp;31,
2010, 2009 and 2008. As such, we urge you to find ways to provide additional quantitative
disclosures that conveys to investors the current and ongoing risks related to the
recoverability of your assets as well as the risk that additional charges may need to be
recorded. In this regard, please note, in the Critical Accounting Estimates section of
Release No.&nbsp;33-8350, the Staff&#146;s view that companies should provide quantitative
disclosures when quantitative information is reasonably available and will provide material
information for investors. As a result, we caution you that, to the extent you gather and
analyze information regarding the risks of recoverability of your assets, such information
may be required to be disclosed if it would be material and useful to investors. We believe
that it is important to provide investors with information to help them evaluate the
current assumptions underlying your impairment assessment relative to your current market
conditions and your peers to enable them to attempt to assess the likelihood of potential
future impairments. We believe that detailed rather than general disclosures regarding
these risks and exposures would provide investors with the appropriate information to make
this evaluation. You should consider providing additional quantitative disclosures related
to each type of potential charge, including impairment charges related to inventories and
intangible assets, as well as restructuring charges.</I></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Response to Comment 2:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Company acknowledges the Staff&#146;s comment and will consider providing additional
quantitative disclosures in our future filings, beginning with our 2011 Form 20-F, including, if
applicable:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional quantitative disclosure to convey to investors the current and ongoing risks
related to the recoverability of our assets and any risks that additional charges may need
to be recorded;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Quantitative disclosure in accordance with Release No.&nbsp;33-8350 when such quantitative
information is reasonably available and would provide material information for investors;
and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional quantitative disclosure related to each type of potential charge, including
impairment charges related to inventories and intangible assets, as well as restructuring
charges.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>You discuss the impairment analyses you perform under US GAAP. To the extent that your
reporting unit has an estimated fair value that is not substantially in excess of the
carrying value and to the extent that the goodwill for this reporting unit, if impaired,
could materially impact your operating results, please provide the following disclosures:</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The percentage by which fair value exceeds the carrying value as of the
most-recent step-one test;</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The amount of goodwill;</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>A description of the assumptions that drive the estimated fair value;</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>A discussion of the uncertainty associated with the key assumptions. For
example, to the extent that you have included assumptions in your discounted cash
flow model that materially deviates from your historical results, please include a
discussion of these assumptions; and</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>A discussion of any potential events and/or circumstances that could have a
negative effect to the estimated fair value.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>If you have determined that the estimated fair value substantially exceeds the carrying
value, please disclose this determination. Please also provide the above disclosures, as
applicable, for any long-lived assets or asset groups for which you have determined that
fair value is not substantially in excess of the carrying value and to the extent that
the asset amounts, in the aggregate or individually, could materially impact your
operating results. Please refer to Item&nbsp;303 of Regulation&nbsp;S-K and Sections&nbsp;216 and
501.14 of the SEC&#146;s Codification of Financial Reporting Policies for guidance.</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 4

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Response to Comment 3:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The goodwill reported by the Company under U.S. GAAP is entirely related to a small reporting
unit called &#147;Italian retail owned stores.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As discussed under &#147;<I>Reconciliation of operating loss from Italian GAAP to US GAAP</I>&#148; on page
F-48 of the 2010 Form 20-F, as part of our 2010 financial statement close process, the Company
revised its sales growth projections for the Italian retail owned stores as the expected recovery
in the Italian retail furniture market following the 2008/2009 economic crisis failed to
materialize with the anticipated strength. As a result of the lingering global economic
uncertainties, and the corresponding decrease in our expected sales of finished products through
our Italian retail owned stores for future years, as of December&nbsp;31, 2010, the Company concluded
that the carrying value of the goodwill (6,911,000 Euro as of January&nbsp;1, 2010) related to such
reporting unit was greater than the fair value of the reporting unit based on the first step of the
impairment test required by ASC 350. As a result, as of December&nbsp;31, 2010, the Company performed
the required second step of the impairment test by comparing the implied fair value of goodwill to
the carrying value of the goodwill, which resulted in an impairment charge of 706,000 Euro.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Accordingly, as of the date of the most-recent first step of the impairment test on
December&nbsp;31, 2010, the fair value of the above mentioned goodwill did not exceed the
carrying value and, therefore, no percentage is provided herein or in the 2010 Form 20-F.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As disclosed on page F-47 of the 2010 Form 20-F, as of December&nbsp;31, 2010, the amount of
goodwill was reduced to 6,205,000 Euro after recording an impairment loss of 706,000 Euro.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As disclosed on page F-48 of the 2010 Form 20-F, the fair value as of December&nbsp;31, 2010
was determined based on a discounted cash flow model. The key assumptions used in
performing the impairment tests related to an estimated long-term growth rate of 1%, the
weighted average cost of capital equal to 9.9%, and an estimated average growth rate in
sales of 6% for future years.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As described on page F-47 of the 2010 Form 20-F, these key assumptions are subject to a
number of uncertainties, including: (i)&nbsp;the fact that prospects for full economic recovery
in Italy remain uncertain, since private consumption is negatively impacted by a general
weakness in the job market, high levels of public indebtedness, and a decreasing level of
savings among families, and (ii)&nbsp;the difficulty of predicting the impact on retail sales
and the purchasing power of consumers of the recent social and political tensions in the
Middle East and Northern Africa which have added a further level of uncertainty on the
supply-side. In addition, the Weighted Average Cost of Capital (&#147;<U>WACC</U>&#148;) formula
used to calculate the goodwill is also subject to a series of quantitative assumptions
(including the relevant market premium, risk free lending rate and levered beta). The data
underlying these assumptions varies over time and have been affected materially by the
recent economic, financial and political turmoil. As a result, future assumptions are likely
to reflect different values. The WACC is also affected by the debt interest rate prevailing
in the home furnishings sector at the time of calculation, and therefore is subject to
variability in prevailing money market rates for the same reasons as explained above.</TD>
</TR>


</TABLE>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 5

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the year ended December&nbsp;31, 2010, management was not aware of any event or any
circumstances that could have a negative effect on the estimated fair value and, therefore,
no disclosure about any such events or circumstances is provided herein or in the 2010 Form
20-F.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We respectfully submit, therefore, that the disclosures requested by the Staff have been
included by the Company under &#147;<I>Reconciliation of operating loss from Italian GAAP to US GAAP</I>&#148; on
pages F-47 and F-48 of the 2010 Form 20-F. The Company acknowledges the Staff&#146;s comment and will
continue to provide disclosure that is substantially similar to the disclosure provided by the
Company under &#147;<I>Reconciliation of operating loss from Italian GAAP to US GAAP</I>&#148; of the 2010 Form 20-F
in our 2011 Form 20-F and in future annual filings on Form 20-F.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As for any other long-lived assets or asset groups that have been tested for the impairment
(including those assets within the reporting unit for which we recorded an impairment charge), we
have determined that their fair value is substantially in excess of the carrying value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Company reviews long-lived assets, including intangible assets with estimable useful
lives, for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a
comparison of the carrying amount of an asset with its recoverable value, which is the higher of
(a)&nbsp;future discounted cash flows expected to be generated by the asset or (b)&nbsp;estimated fair value
less costs to sell. If such assets are considered to be impaired, the impairment is measured by the
amount by which the carrying amount of the assets exceeds the recoverable value of the assets.
Assets to be disposed of are reported at the lower of their carrying amount and their fair value
less costs to sell. Estimated fair value is generally determined through various valuation
techniques including discounted cash flow models, quoted market values and third-party independent
appraisals, as considered necessary. As a result of the goodwill impairment charge within our
Italian retail owned stores reporting unit, we reviewed all assets within that reporting unit for
impairment.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 6

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Item&nbsp;18. Financial Statements</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Note 17. Other Liabilities, page F-30</U>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>4.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>You disclose that you are involved in a number of certain and probable claims and legal
actions and you believe that the ultimate disposition of these matters, after the provision
accrued, will not have a material adverse effect on your consolidated
financial position or results of operations. Please confirm that you considered these
matters in the aggregate in addition to individually in making this determination.
Please also revise your disclosure to address the impact of these matters on your
statements of cash flows. In addition, if there is at least a reasonable possibility
that a loss exceeding amounts already recognized may have been incurred, please either
disclose an estimate (or, if true, state that the estimate is immaterial in lieu of
providing quantified amounts) of the additional loss or range of loss, or state that
such an estimate cannot be made. Please refer to ASC 450-20-50.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Response to Comment 4:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As discussed in Note 17 on page F-30 of the 2010 Form 20-F, the Company is involved in a
number of certain and probable claims (including tax claims) and legal actions arising in the
ordinary course of business. In the opinion of management, the ultimate disposition of these
matters, after the accrued provisions (at December&nbsp;31, 2010 and 2009, such accrued provisions were
15,268,000 Euro and 14,952,000 Euro, respectively), will not have a material adverse effect on the
Company&#146;s consolidated financial position or results of operations. The Company confirms that, in
making such determinations, these matters were considered individually and in the aggregate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Company further confirms that it does not expect such matters to have a material adverse
effect on the Company&#146;s consolidated statement of cash flows.
In addition, the Company will disclose in its future filings, beginning with our 2011 Form 20-F,
whether such matters could have a material adverse effect on the Company&#146;s consolidated financial
position, results of operations and statement of cash flow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In addition, the Company determined that, as of December&nbsp;31, 2010, there was not a reasonable
possibility that a loss exceeding amounts already recognized may have been incurred, and therefore
has not disclosed an estimate of the additional loss or range of loss, or stated that such an
estimate cannot be made, in accordance with ASC 450-20-50.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">As disclosed in Note 27 on page F-59 of the 2010 Form 20-F, on June&nbsp;22, 2011, Natuzzi Americas
Inc. (&#147;<U>Natuzzi Americas</U>&#148;), one of our consolidated subsidiaries, reached a settlement with
the U.S. Internal Revenue Service (&#147;<U>IRS</U>&#148;) according to which Natuzzi Americas paid the IRS
USD 1.239&nbsp;million, which amount was substantially equal to the amount of the provision recorded
pursuant to FASB Statement No.&nbsp;48 (codified in ASC 740-10).
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 7

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Exhibit&nbsp;13.1 </U>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>5.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Your certification refers to the annual report on </I><I>Form 20-F</I><I> for the year ended December
31, 2009. Please amend your </I><I>Form 20-F</I><I> to include a certification that appropriately refers
to the year ended December&nbsp;31, 2010. In doing so, please refile the </I><I>Form 20-F</I><I> in its
entirety, along with the currently dated certifications.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Response to Comment 5:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We have re-filed the 2010 Form 20-F in its entirety to include a certification that
appropriately refers to the year ended December&nbsp;31, 2010.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">* * *
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
September&nbsp;15, 2011<BR>
Page 8

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Per your request, the Company hereby acknowledges the following: (i)&nbsp;the Company is
responsible for the adequacy and accuracy of the disclosure in the filing; (ii)&nbsp;staff comments or
changes to disclosure in response to staff comments do not foreclose the SEC from taking any action
with respect to the filing; and (iii)&nbsp;the Company may not assert staff comments as a defense in any
proceeding initiated by the SEC or any person under the federal securities laws of the United
States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We hope that our responses adequately address the Staff&#146;s comments. If you have questions
concerning this letter or need further assistance, please do not hesitate to call our Investor
Relations contact, Mrs.&nbsp;Silvia Di Rosa (&#043;39 33578 64 209) or our U.S. securities law counsel,
Michael J. Volkovitsch (212-225-2190) or Pamela L. Marcogliese (212-225-2556) of Cleary Gottlieb
Steen &#038; Hamilton LLP.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Very truly yours,</TD>
</TR><tr>
<td>&nbsp;</td>
</tr>

<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">/s/ Vittorio Notarpietro</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vittorio Notarpietro
<BR>
Chief Financial Officer
<BR>
Natuzzi S.p.A.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Jeffrey Gordon, Securities and Exchange Commission<br>
Ms.&nbsp;Nudrat Salik, Securities and Exchange Commission<br>
Mrs.&nbsp;Silvia Di Rosa, Investor Relations for Natuzzi S.p.A.<br>
Mr.&nbsp;Michael J. Volkovitsch, Esq., Cleary Gottlieb Steen &#038; Hamilton LLP<br>
Mr.&nbsp;Francisco L. Cestero, Esq., Cleary Gottlieb Steen &#038; Hamilton LLP<br>
Ms.&nbsp;Pamela L. Marcogliese, Esq., Cleary Gottlieb Steen &#038; Hamilton LLP</TD>
</TR>
</TABLE>
</DIV>


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