MILAN — IT Holding SpA will hold a board meeting today to discuss expressions of interest from “various parties” as it continues to seek a solution to its beleaguered financial situation.
The Italian fashion group stated Monday that it was still in talks with Chinese businessman Billy Ngok’s Mensun Ltd., but no longer on an exclusive basis, and that “contacts with other investors” had started. (Mensun’s exclusive terms expired Dec. 31.)
One of the proposals involves a capital increase and renegotiation of IT Holding’s debt, which “could allow the group to rebalance its financial situation,” according to the statement.
IT Holding also said a delay in royalty payments had created “tension” with licensors and that discussions were under way, “aimed at finding a solution in the common interest of all parties.” (IT Holding’s main license for Just Cavalli, which contributed more than a third of group revenues in 2007, expires next year and is under scrutiny, following Roberto Cavalli’s negotiations with private equity firm Clessidra SGR SpA, according to sources. Cavalli is in talks to sell between 15 and 20 percent of his company to Clessidra.) Long-standing rumors resurfaced last month linking Renzo Rosso’s production unit, Staff International SpA, with the Just Cavalli license. A spokeswoman for Rosso declined to comment Monday.
IT Holding, which owns the Gianfranco Ferré, Malo and Extè brands, and also operates under license the VJC Versace, Versace Sport, C’N’C Costume National and Galliano labels, is being squeezed by net debts, which, as of Sept. 30, totaled 295.4 million euros, or $378.5 million. Dollar figures were converted at average exchange rates for the periods to which they refer.
IT Holding met with financial institutions last week and asked for effective and full use of the credit facilities formally available at least in the short term.
In December, credit ratings agencies Moody’s Investors Service and Standard & Poor’s downgraded IT Holding for the second time in as many months, after the fashion company asked lender Intesa Sanpaolo SpA to postpone for a second time a 9.4 million euro, or $12 million, payment on a loan originally due in October to April.
Also in December, IT Holding said it had reached a nonbinding agreement with Mensun regarding “a possible disposal of assets.” At the time, IT Holding did not specify what those assets were, but they are thought to include Ittierre SpA, its apparel manufacturing unit. In September, IT Holding said negotiations involved the sale of a minority stake in PA Investments SA, its parent company, and possible commercial and production agreements in the Asian market.
IT Holding chairman Tonino Perna controls 60.6 percent of IT Holding via PA Investments and a further 1 percent via GTP Holding SpA, a separate holding for PA. PA has debts of around 140 million euros, or $179.4 million.
In November, IT Holding 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.
IT Holding’s share price slumped 9.2 percent to a new low of 0.16 euros, or 21 cents, at the close of trading in Milan.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)