Wednesday, 5 August 2009

Prada Has Won Their Battle Against The Banks – 5/8/09

The financial pressure has eased at Prada, with a report by WWD Fashion revealing that they have received an extension on their loans.

Earlier this week, there was speculation that Prada had offered a substantial share of the company to Swiss luxury group Compagnie Financière Richemont SA (see the MO Down 3/8). But a Prada spokesperson has since denied this report.

Now that Prada is no longer heading towards the poorhouse, we wonder if they’ll be as attractive to third party investors, whether they are private equity (TPG) or a luxury goods conglomerate (Richemont) …? Given Prada have secured extension of their debt they can continue with their expansion plans to the tune of their own Aria, well at least until 2012.

Click here to read more on their loan extension.

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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,