MILAN — Two credit ratings services downgraded IT Holding SpA on Tuesday after the Italian fashion group asked lender Intesa Sanpaolo SpA to postpone for a second time a 9.4 million euro, or $11.9 million, payment on a loan that was due Monday.
The company, which owns the Gianfranco Ferré, Malo and Extè brands and operates under license the Just Cavalli, Costume National C’N’C and Galliano labels, is seeking to delay the payment until April 18. It was initially due on Oct. 20. Moody’s Investors Service lowered IT Holding’s Corporate Family Rating and Probability of Default Rating to Ca from Caa1. Paolo Leschiutta, vice president at Moody’s and lead analyst for IT Holding, said the “rating downgrade follows the operating difficulties the company is facing due to adverse market conditions and soft consumer spending and Moody’s view that ongoing uncertainties on future operating performances might challenge the company to obtain further support from key banks.”
Standard & Poor’s Ratings Services lowered its long-term corporate credit rating on IT Holding to SD (selective default) from CC (very speculative).
IT Holding said this month that it had reached a nonbinding agreement with China’s Mensun for “a possible disposal of assets” belonging to the Italian fashion group. It did not disclose what assets it could sell to Mensun, although there has been speculation that the deal involved a majority stake in Ittierre SpA, the fashion group’s apparel manufacturing unit.
IT Holding said Tuesday that Maurizio Negro, chief executive officer of Ittierre, has resigned for personal reasons, and that no successor was appointed. The post will remain vacant until the next board meeting.
Standard & Poor’s said IT Holding’s “uncertainty over the timing and structure of the transaction” with Mensun, a company represented by Chinese businessman Billy Ngok, “makes it difficult to quantify the benefits to ITH’s business and financial profiles.
” IT Holding this month appointed turnaround specialist Pierantonio Nebuloni as chief executive officer, replacing Tonino Perna, who remains chairman. The company previously said the board had given Perna “a wide mandate” to continue talks with Mensun. The discussions are on an exclusive basis until Dec. 31.
The Italian fashion group has lost more than 80 percent of its market value in the last 12 months. The stock was down 16.7 percent Tuesday to close at 0.18 euros, or 25 cents.
IT Holding is weighed down by the size of its debt, which, as of Sept. 30, following a reduction in working capital, was 295.4 million euros, or $428 million, including a 185 million euro, or $233.4 million, bond, which expires in 2012.
In November, the group forecast an 8 percent drop in full-year revenues and a lower profit margin, after a net loss of 10.1 million euros, or $15.4 million, in the first nine months of the year, compared with earnings of 6.6 million euros, or $8.9 million, in the same period in 2007. Revenues through Sept. 30 fell 7 percent to 468 million euros, or $712.5 million, and earnings before interest, taxes and depreciation dropped 16 percent to 83.2 million euros, or $126.7 million.
Dollar figures were converted at average exchange rates for
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)