The Italian goods company Prada Holding NV might be selling its Jil Sander and Helmut Lang subsidiaries in order to improve the group's profitability.

Patrizio Bertelli, boss of Prada, said in an interview last week that he was considering selling subsidiary Jil Sander, which the company acquired in 1999. Only recently, German designer Jil Sander quit the group and her company for the second time amidst rumours of battles between Sander and Bertelli. According to Bertelli her views were not in line with the group's strategy.

Bertelli is also deliberating on selling US fashion house Helmut Lang, which it fully acquired in October of this year.

Furthermore, Prada has also revealed that it will not continue with its planned IPO next year. This is the fourth time that the group has delayed an IPO. The delay may have something to do with the resignation of Chief Financial Officer Riccardo in October. Riccardo was instrumental in the planning of this IPO. The company recently confirmed that it would go public by June next year if market conditions were favourable.

It now appears that sale of property is Prada's preferred path in raising cash in a bid to raise its level of profitability. It already sold its 45% stake in Churches in a bid to reduce company debt.