Jan 6, 2010

Trouble in Prada-dise?

Apparently Prada has gotten itself into $1.5 billion worth of debt. There has been rumours for quite a while about Miuccia Prada's plans of selling a stake in her brand, although the rumours have been denied.

The New York Post reports that jewelry giant Richemont, which owns Cartier, Montblanc, and Van Cleef & Arpels, are in serious talks to buy a third of the label. Prada's lenders are said to have approached Richemont last year about a partnership, but they refused, finding the reported $3.8 billion valuation of the label too high. A deal would position Prada to make significant global expansions into key markets like China, while competing with luxury giant LVMH.

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