WWD.com/business-news/financial/cardin-renews-safilo-license-2232366/
government-trade
government-trade

Cardin Renews Safilo License

Pierre Cardin expects Safilo Group SpA to resolve its debt problems after renewing its eyewear license with the Italian manufacturer for another 10 years.

MILAN — Pierre Cardin expects Safilo Group SpA to resolve its debt problems after renewing its eyewear license with the Italian manufacturer for another 10 years.

“The renewal of the licensing agreement is confirmation of our trust and high regard for Safilo Group, which thanks to its great strength in creative research and product quality, guarantees that we can achieve important targets,” Pierre Cardin stated Thursday.

The new deal runs through 2020 and includes the Pierre Cardin Evolution line.

Safilo, which also has licenses with Armani, Dior, Gucci and Valentino, among others, is exploring alternative ways to ease its liabilities after private equity investors walked away from sale talks last month.

The group is saddled with debts of 592.1 million euros, or $847.2 million, and needs a cash injection of at least 250 million euros, or $357.7 million, according to analysts. It does not expect to file for bankruptcy.

On Tuesday, Safilo reported second-quarter losses of 137.7 million euros, or $187.6 million, due to an 11.8 percent decline in sales and restructuring costs.

Dollar figures were converted at average exchange rates for the periods to which they refer.