Jan 27, 2010
Italian mega-brand does not mind selling a third of the business to the Swiss luxury-giant.
Prada seems to be ready for merger with Richemont. This union is likely to make great changes in the established system of the world’s luxury-industry, according to The Post. The popular Italian brand whose development is prevented by numerous financial obligations decided to find the way out by selling of 30 % of the business to Richemont – the company that now owns such brands, as Cartier, Montblanc and Van Cleef & Apparels.
According to Bloomberg, the Richemont-Prada conglomerate is likely to create competition for LVMH, especially in the East.
Presently there are no official comments neither from Richemont, nor from Prada. According to Bloomberg Prada ignores all requests and even does not answer the phone. Meanwhile financial situation of the company is really awful, presently principal amount of the company’s debt is more than $1,7 billion, Prada needs taking a fateful decision.
Even without meditation about financial nuances of the bargain such a collaboration seems to be quite strange. Will it be successful? Prada is known for its provocative and innovatory spirit, while Richemont is known for its excessive conservatism. Is this likely to result in dramatic changes in the brand’s designer’s aesthetics?
