Major beauty e-tailer THG has announced a “successful fundraise” of £90 million, saying it was “oversubscribed with support from new investors and existing shareholders”, including a big contribution from founder-CEO Matthew Moulding.
Lookfantastic
The £90 million is made up of £30 million worth of new Ordinary Shares, a £55 million convertible loan entered into by Moulding, and £5 million of “partly paid shares, paid up by” the CEO.
The £30 million chunk (actually it raised gross proceeds of approximately £29.7 million) was at 32.3p a share and represents a discount of 5% to the closing price on 24 March, the last trading day prior to the announcement of the Equity Placing.
The money raised will be used alongside company cash “to reduce gross leverage” through early repayment of a £109 million loan and downsizing another euro-denominated loan by €125 million to €475 million.
The company said that after the demerger of its Ingenuity e-commerce services tech unit and its inclusion in the FTSE 250 index, the new financing “represents another significant step in THG’s simplified debt and equity investment case as a cash generative global retailer and brand owner, well positioned to deliver on its next phase of development in its growing consumer markets”.
Negotiations between Prada and Capri Holdings for the Milanese luxury group’s acquisition of Versace could be concluded in a matter of weeks. According to rumours reported in the last few days by Italian business daily Il Sole 24 Ore, an April 10 deadline has been set for the negotiations that see Prada in pole position for buying Versace, in a deal worth approximately €1.5 billion. The deal might be worth up to €2 billion if it were to include luxury footwear brand Jimmy Choo. The goal of the operation is to relaunch the eponymous label founded by Gianni Versace, which was sold in 2018 by private equity firm Blackstone and the Versace family to Capri Holdings for approximately €1.85 billion.
Through the acquisition, the Prada group would diversify and strengthen its market position, while creating an Italian luxury conglomerate capable of competing internationally, especially against the duopoly formed by French giants LVMH and Kering. The Milanese fashion group is listed on the Hong Kong stock exchange, and currently has a market capitalisation of HK$140.15 billion (approximately €16.7 billion). Its brand portfolio includes Prada, Miu Miu, Church’s, Car Shoe, Marchesi 1824, and Luna Rossa. Buying Versace (and possibly Jimmy Choo) would add considerable heft to the Prada group, which now seems stronger than ever, having recorded net revenue of €5.4 billion in 2024, a 17% increase over 2023, well above the market average.
The Prada label’s retail revenue grew by 4%, and Miu Miu’s by 93%. The results were all the more significant in terms of the group’s regional performance, especially in Asia, where competitors struggled while the Prada group reported double-digit growth in net retail sales in Japan (up by 45.8%), the Middle East (up 26%), Europe (up 17.5%), and Asia-Pacific as a whole (up 13.1%). Versace instead recorded a 15% revenue drop between October and December 2024, down to $193 million, also posting an operating loss of $21 million. Figures that have led some analysts to question the wisdom of the ‘Pradace’ deal, as the Prada-Versace marriage has been dubbed by some. Italian investment bank Equita said that “Prada would have the resources to support Versace’s relaunch, but it could be a potentially lengthy, difficult process.” Equita’s analysts added they would not “welcome the news” but “at the same time, given the potential valuation figures currently circulating, we are envisaging a limited negative impact in terms of value creation.”
It is a fact that, from April 1, a member of the Versace family will no longer be in charge of the label’s creativity, since Donatella will make way for Dario Vitale, former design and image director at Miu Miu. For several days, Vitale’s appointment has fuelled rumours that the group spearheaded by Miuccia Prada and Patrizio Bertelli is close to clinching the Versace deal with Capri Holdings. Donatella Versace will not however completely sever her ties with the label she has led since 1997, the year of her brother Gianni’s death. She will become Versace’s chief ambassador and “will continue to support the brand and its values,” according to John D. Idol, president and CEO of Capri Holdings.
In the press release announcing a spate of new appointments at Versace, Idol stated that a “a carefully thought-out succession plan” is under way at the label. Capri Holdings has been trying to sell Versace for a long time, and the plan became more urgent last October, when a US judge blocked Capri’s $8.5 billion merger with Tapestry, owner among others of Coach and Kate Spade. If Prada were to succeed in acquiring Versace, the deal would surely signal a decisive change of pace in the Italian fashion industry, after major foreign groups have been shopping for luxury labels in Italy for decades, buying the likes of Fendi, Gucci and Valentino.
In a partnership that we’re told was born out of “exceptional craftsmanship and timeless elegance” Paris-based luxury footwear brand Maison Corthay is to share space at peer Cifonelli’s London Mayfair’s Clifford Street store.
Bringing together “two legendary French Maisons”, the combination presents a wider curated selection of footwear and tailoring.
The two brands said the harmonious new setting “offers a curated luxury experience, where visitors can immerse themselves in the worlds of both,” delivering harmony between a perfectly tailored suit and a crafted pair of shoes.
It makes sense in many ways with two clearly complementary labels co-existing in a space in one of the most upscale London neighbourhoods that’s a magnet for affluent locals and tourists alike.
“This collaboration in London feels like a natural extension of our shared vision. It connects us with a clientele that values exclusivity and personalisation,” said Pierre Corthay.
Corthay founded his brand in Paris in 1990 with the aim of “defin[ing] luxury footwear by merging tradition with innovation”.
Every pair is made in France and the brand offers both bespoke, made-to-measure shoes and a curated selection of ready-to-wear men’s footwear.
Meanwhile, Cifonelli stretches back somewhat further having been founded in 1880. It’s known for its precise tailoring and signature shoulder construction.
Crew Clothing is moving its HQ from Earlsfield to The Drapery, Kingston-upon-Thames. It said the new space will support the continued growth of the company, with it set to occupy a 32,000 sq ft, six floor, office.
The move will happen early next month and follows on from recent news from the brand of 17% like-for-like Q4 sales growth, and a plan to open 20 further stores in 2025.
It’s taking over three of the six floors of The Drapery, with the remaining three floors that cover around 17,000 sq ft offered on the rental market.
Crew said the opening of new headquarters “is a significant investment for the brand and further demonstrates Crew’s position as a key player in the retail sector”.
Its HR Director Rupert Hay called it a “major milestone” for the business that began “as a collection of rugby shirts, sold out of a shop in Salcombe”. And he said it “paves the way for further development in the years ahead”.
Back in January, Crew had said that as well as the 17% Q4 sales jump, the final two weeks of the trading year saw even bigger double-digit gains. And digital demand leapt 70% but with no negative impact on store demand. The company had also seen a record Black Friday period.
Entertainment8 years ago