MILAN — There’s still no word when Prada will finally go public, but the company is mulling several moves to cut its debt and bolster its balance sheet.
Prada is mum on just what those options might be, but a source close to the firm said possibilities include spinning offreal estate assets and integrating the Miu Miu brand into the Prada group. Prada’s debt, amassed during a buying spree of brands like Jil Sander and Helmut Lang, stood at $809.4 million as of June 30. (Dollarshave been converted from euros at current exchange rates.)
Currently, the Miu Miu brand is owned by a Luxembourg company controlled by the Prada family and Prada pays royalties to the company. Those royalties came to about $10 million in 2001, according to Prada’s annual report.
As for the real estate spinoff, Prada could opt to transfer all or some of its real estate assets to a special-purpose vehicle and then sell off a stake in this company to a third party such as a property company or a bank, this person said. The group’s real estate assets are estimated to be worth more than $501.5 million.
Such a plan would generate quick cash for Prada, which would then pay rent to the special-purpose vehicle, this source explained. But he stressed that Prada is still mulling this idea, downplaying a local press report that Patrizio Bertelli and Miuccia Prada have already asked for a bank loan of $130.4 million to $150.5 million to finance the spinoff.
This summer, Prada pulled the plug on its highly anticipated initial public offering for the third time, owing to poor market conditions. Since then, Bertelli has said Prada still intends to list shares, but hasn’t been more precise on timing.
"'Dynasty' is all about gowns, the diamonds and the scandal, so it's a bit like the fashion industry. When we come to Cannes it's all about the red carpet dresses too, so it all fit really well," said designer @philippplein78 on the theme of his high-glamour resort 2019 show at his mansion in Cannes. #wwdfashion #cannes (📷: @zefashioninsider)
"I think Spike is such a brilliant director because he holds up a mirror to society and reflects these issues, yet he doesn't shove it down your throat, he doesn't tell you what to think," says @lauraharrier on her latest film @Blackkklansman. Harrier was at the Cannes Film Festival – for the very first time – with @officialspikelee. #wwdeye #cannes (📷: @zefashioninsider)
“I would think to myself, Are you happy? Yes, I’m wildly happy. I go to this studio every day and, in my inside voices, I’m giggling; I’m singing. Yes, it’s a lot of work, it’s a [huge] volume of material. It wouldn’t be for everybody. But I was very happy,” said soap opera star @therealsusanlucci of checking in throughout the years with her career trajectory. Lucci spoke to WWD about her decades-long career, love for pilates, motherhood and her QVC activewear line. Read Bridget Foley’s full piece on Lucci on WWD.com #wwdfashion (📷: @celestesloman)
@balmain has taken a stand at the #cannes Film Festival, dressing 16 actresses at a press call for the project “Noire N’est Pas Mon Metier,” or “Black Is Not My Profession.” The multimedia project includes a book, photo exhibit and documentary, which aims to expose discrimination in the French and American entertainment industries. “The moment I was asked to participate, I knew it was right for me, and for this brand, to form a part of this moment,” Balmain creative director @olivier_rousteing told WWD. #wwdnews #wwdfashion
"I always feel curious and I feel like there's more to learn. But I think being relevant, feeling relevant, I personally always feel that there's just so much more to know. And maybe that's the key.” — @themarcjacobs #wwdsummits #wwdbeauty (📷: @patrickmacleodphoto )
“The most amazing thing about her is that, regardless of all the things that have happened to her, her spirit is so undaunted by all of it. She is the most cheerful person you will ever meet. She doesn’t see problems, she only sees solutions,” said @ajanaomi_king of activist Ifrah Ahmed, who she plays in a new film “A Girl from Mogadishu.” WWD caught up with King at Cannes — Head to WWD.com to read more about her new role, personal style and how she uses social media for causes like Time’s Up and Black Lives Matter #wwdeye
WWD asked a number designers to share their thoughts on what Meghan Markle’s wedding gown will look like this Saturday. Here, Valentino’s Pierpaolo Piccioli sketches his look. #wwdfashion #royalwedding #meghanmarkle