DIESEL BANKS ON GROWTH
Byline: Samantha Conti
MILAN — Diesel has big investment plans — and has turned to the Italian bank Credito Italiano for help. The Italian jeans and sportswear company has opened a revolving credit line with the bank for $77 million that will go toward reinforcing its retail network, building a new headquarters and buying fashion brands. Dollar figures are converted at current exchange rates.
The credit line will be channeled through a new, Luxembourg-based company called Gold Rush SA that will essentially act as the “bank” of the Diesel group, which controls about 20 companies. The credit line lasts for six years.
“It was crucial for us to find a partner — rather than a financial backer — for this project. The people from Credito Italiano, more than any other bank, showed a particular openness and flexibility with regard to this idea,” said Renzo Rosso, the founder and chairman of Diesel.
The company said in a statement that it plans to open 150 sales points over the next five years, build a new headquarters in the Veneto region of Italy and make acquisitions. The company owns the Diesel brands and the New York Industrie label. Rosso has said he is interested in buying other brands.
Diesel expects its consolidated sales to rise 30 percent this year, to $450 million.