MILAN — Kiko Milano is facing a transition.
After the American arm of the Italian beauty brand filed for bankruptcy in Delaware last month, the company is eyeing a capital increase, according to Italy’s daily paper Il Sole 24 Ore’s report on Tuesday.
Mentioning a study of the Reorg research center, the report states that Kiko Milano is considering to increase its capital by 100 million euros to 150 million euros to reschedule its debt with its creditor banks.
According to the report, Kiko Milano’s total debt amounts to 200 million euros, with almost half of it owed to the Banca Generali SpA bank. The rest of the debt is owed to a pool of institutions, including BNP Paribas and UniCredit banks.
Reached on Tuesday, the company declined to comment.
Founded in 1997 by entrepreneurs Stefano and Antonio Percassi, Kiko’s overall revenue for 2017 came in at 610 million euros, up 3 percent on the previous year. The brand operates more than 1,000 doors in 21 countries, including its largest flagship in Milan, and an e-commerce channel spanning 35 countries.
In particular, the online store will be enhanced and will represent the main focus of the brand’s strategy in the U.S., where the company is shutting down nearly all of its 29 brick-and-mortar units and closing its New York headquarters.
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The reorganization is part of a bigger, global plan that will favor a retail expansion in markets experiencing high rates of development, as Asia, India and the Middle East. The strategy includes investments for 90 million euros in the next three years.
In July, Kiko SpA, parent company of the cosmetic labels Kiko Milano, Madina, Womo and Bullfrog, has appointed Cristina Scocchia as its chief executive officer. Scocchia was formerly the ceo and president of L’Oréal’s Italian division for four years and helmed the international operations of the Procter & Gamble’s cosmetics business prior to that.