Lang for sale

Italian fashion concern, Prada, has finally entered into talks with a number of companies regarding the sale of Helmut Lang. According to vogue.co.uk, Prada could use the revenues from the sale to help it carry out its IPO, which CEO Patrizio Bertelli has been postponing since September 2001.

Bertelli acquired 51 per cent of Helmut Lang in 1999 and purchased the remainder of the company last year. Lang subsequently left the company in January of this year amidst rumours of strife with Bertelli. The industry assumed the label would be sold off and this now appears to be the case.

The sale is expected to free up funds for the GBP477 million bond that is due next month. Prada profits rose 33 per cent to GBP25 million in 2004. Financial results for the year are pending.