Helmut Lang/Prada drama> update*HL-art

[softgrey]

i don't know about 'trust'...
but i think that diesel guy has got incredible business skills...

he's really smart ...

thx for the update lena...

 

[Lena]

yes, he's good with business but he's bad with developing towards the right direction, MMM is suffering more than gaining from this new diesel deal..

and ...what if Tommy buys Helmut?

 

[kimair]

more on prada selling helmut lang from today's ny times:

Prada, which turned a black nylon backpack into a must-have fashion accessory, said Tuesday that it had entered talks to sell its unprofitable Helmut Lang brand. The proceeds of the sale would help shore up Prada's balance sheet at a time when the luxury goods industry is confronting a slowing world economy and a flood of inexpensive Chinese products.


Prada acquired Helmut Lang, which has flagship stores in New York, Paris, Vienna and Milan and also sells its products in high-end department stores, from its Austrian-born designer and namesake, who remained with the company until January. Prada gave no reason for Mr. Lang's departure at the time, though industry analysts said he might have clashed with Mr. Bertelli. Jil Sander, the designer, left the company late last year.

A Prada spokesman, Jason Jacobs, would not say what companies were in talks for Helmut Lang or what the brand might be worth.

 

[faust]

i dont trust diesel following the way MMM is moving on faust, i really dont trust jeans companies, not at all

neither do I, Lena, neither do I.

 

[Lena]

good news first:

Lang himself has set up an office in New York’s SoHo called HL-art to evaluate future projects

here a huge Helmut/Sander/Prada article from wwd of today

Prada Holding NV said Wednesday that its Jil Sander unit stayed in the red in 2004, even as it saw double-digit sales growth.

The news came as Prada confirmed widespread speculation it is pondering the sale of another of its labels that has seen the departure of its namesake designer, Helmut Lang. WWD reported on March 25 that three potential buyers were said to be looking at the Lang business, but Prada declined to comment at that time.

Jil Sander is shifting its fiscal year to end on Jan. 31 to coincide with that of Prada Holding, creating a onetime 13-month reporting period. For the 13 months ended Jan. 31, Jil Sander’s net loss widened to 29.6 million euros, or $37 million, and sales totaled 153.1 million euros, or $191.4 million.

All dollar figures have been converted from the euro at average exchange rates for the period to which they refer.

Jil Sander said sales for the 12-month period ending Dec. 31 rose 10 percent to 137.5 million euros, or $170.5 million, from 124.9 million euros, or $141.1 million, in 2003 on “noteworthy” retail growth in Germany and elsewhere in Europe.

Prada did not provide a net loss figure for the 12-month period to directly compare with Jil Sander’s 2003 net loss of 28.4 million euros, or $32.1 million.

Jil Sander blamed the 2004 losses on a combination of an adverse exchange rate environment, store operating expenses and product development costs. In a statement, the company said it expects to reduce losses in 2005 by implementing cost-control measures and an “aggressive restructuring plan” targeting production, logistics and retail.

“Last year was certainly a difficult year from the group; however, we are taking the necessary steps in terms of organizational restructuring and cost control to bring Jil Sander back to profitability,” Ferraris said in a statement. “Our goal is to continue to grow the top line through our core ready-to-wear business, but also through increased licensing revenues, widening our accessories range and selectively expanding our distribution network.”

Ferraris said Jil Sander’s return to the namesake label helped boost sales in 2004. As reported, Sander made peace with Prada and returned to her post as creative director in May 2003, only to depart again in November of last year.

In February, a design team and Sander’s longtime stylist, Joe McKenna, presented the first Jil Sander collection to bow since the designer’s departure. The fall 2005 collection won rave reviews for sticking to Sander’s clean, minimalist aesthetic and churning out high-belted coats and bubble skirts in black and neutral hues. WWD wrote: “Whatever their current relationship may be with Sander herself, McKenna and the rest of the team captured her essence with almost eerie clarity.” (McKenna is a consultant for WWD’s sister publication, W.)

Meanwhile, a Prada spokesman acknowledged the company is in talks to sell the Helmut Lang brand, but Prada failed to identify any potential buyers.

Press reports have named Diesel and Tommy Hilfiger as contenders, but sources close to both companies have denied their interest in buying the Lang brand. A Tommy Hilfiger spokesman declined to comment and a Diesel spokeswoman issued the following statement: “We are always aware of what is going on in the market, but right now, we are very busy with the management and growth of what we already have.”

Similarly, sources at several private equity companies said they haven’t heard from Prada or its bankers regarding Lang. They downplayed any potential interest in the brand, noting financial losses and a complex situation resulting from the namesake designer’s departure earlier this year. Many are speculating that a buyer might forge an agreement with Lang to return.

One source estimated Prada chief Patrizio Bertelli is asking about 100 million euros, or $128.92 million, for Lang. Unlike Jil Sander AG, which is still publicly traded thanks to a small float, Lang is 100 percent Prada-controlled and there are few numbers available for valuations. The most recent figures show Lang’s 2003 sales declining 33.1 percent to 27.9 million euros, or $31.5 million, from 41.6 million euros, or $39.5 million, in 2002.

 

[whizkit]

Jil Sander blamed the 2004 losses on a combination of an adverse exchange rate environment, store operating expenses and product development costs.

If you've visited the London store at Burlington gardens, you can see why store oprating costs are high. Gigantic store with generous walking space. I can't imagine the amount of products they must sell to cover operating costs.



And I hope that the new owner of HL brings him back. It is the only way I can see for the label, which is built around the person rather than name, to survive in the long run.

 

[softgrey]

yes, he's good with business but he's bad with developing towards the right direction, MMM is suffering more than gaining from this new diesel deal..

and ...what if Tommy buys Helmut?

well-tommy is another story...
but they just bought lagerfeld gallery and were having financial issues before that-they cancelled their so-called 'designer' women's line-so i doubt they can really afford lang...i don't think it will be tommy...

but do we know what the sales figures for margiela are?...are you sure the business is suffering?...they moved into new headquarters, opened a store in london last year and are supposed to be opening in ny...sounds like they're doing ok to me...

me and my friends bought more margiela last year than ever before...i don't really see the suffering...

 

[Lena]

i never said that the MMM sales are suffering, its the creativity level that has the -big- problem softie

 

[kit]

Isn't Tommy Hilfiger part of a large Hong Kong based conglomerate , that also owns ASPREYS in London and NYC .


They would have the money for Lang , and I think they have a large jeanswear affiliation that mad(k)e Gloria Vanderbilt jeans etc .

They MIGHT be interested in the neglected- by- Prada , but market- successful Helmut Lang Jeans line .

 

[softgrey]

i never said that the MMM sales are suffering, its the creativity level that has the -big- problem softie

oh well...that's a whole different story...
i actually like the basic pieces, as i've said, and i have a bunch of them, so i'm not so sad ...i actually used to think he was a bit silly and pretentious sometimes...

i don't think it's always a bad thing to be forced to look at things with a more commercial eye...it taps into a different area of creativity and creates a new challenge...plus when you're making money, it gives you freedom to do some experimenting on the side...i like the new direction at mmm...

diesel could do wonders with helmut lang jeans...
they could be the next big thing...AGAIN...

 

[softgrey]

Isn't Tommy Hilfiger part of a large Hong Kong based conglomerate , that also owns ASPREYS in London and NYC .


They would have the money for Lang , and I think they have a large jeanswear affiliation that mad(k)e Gloria Vanderbilt jeans etc .

They MIGHT be interested in the neglected- by- Prada , but market- successful Helmut Lang Jeans line .

what do you say kit...hong kong conglom...??...
i know nothing of this.....
i thought hilfiger was himself and independent...does he have backing i don't know about?...

i was wondering where he came up with the cash to buy LG...
is this something fairly recent?...as far as i knew and according to industry 'buzz'...they had been struggling financially not so long ago...

 

[kit]

what do you say kit...hong kong conglom...??...
i know nothing of this.....
i thought hilfiger was himself and independent...does he have backing i don't know about?...

i was wondering where he came up with the cash to buy LG...
is this something fairly recent?...as far as i knew and according to industry 'buzz'...they had been struggling financially not so long ago...

Here you go :-

http://www.a-ggroup.com/frameset.htm

http://www.tommy.com/info/history-1989.jsp

See owners on Asprey and Garrard site , and check the company history for Tommy , 1989 esp , on tommy.com site .

Silas Chiu and Lawrence Stroll are Hong Kong based billionaires .

PS

I'm not trying to be a knowitall ,

It's just that I have an enormous capacity to retain trivia .

 

[whizkit]

HELMUT LANG FOR SALE

PRADA has begun talking to companies that might be interested in buying Helmut Lang. The Italian fashion conglomerate has repeatedly postponed its planned IPO since September 2001 but this sale could put it in stronger stead to carry it out. Having bought a 51 per cent stake of Lang in 1999 as part of a luxury spending spree by ceo Patrizio Bertelli, Prada acquired the remainder of the company last year. When Lang himself left the company in January amid rumours that he was having problems working with Bertelli, it was immediately assumed the company he had launched 30 years earlier would soon be on the block. While Bertelli announced earlier this year that the IPO would be unlikely to happen for at least another year, a Lang sale now would ease the £477 million bond that is due in June. Financial results for Prada for 2004 have yet to be released, but the company saw profits rise 33 per cent to £25 million in 2004. (May 5 2005, AM)

from www.vogue.co.uk


I never knew the HL label was launched 30 years.

 

[kit]

Here you go :-

http://www.a-ggroup.com/frameset.htm

http://www.tommy.com/info/history-1989.jsp

See owners on Asprey and Garrard site , and check the company history for Tommy , 1989 esp , on tommy.com site .

Silas Chiu and Lawrence Stroll are Hong Kong based billionaires .

PS

I'm not trying to be a knowitall ,

It's just that I have an enormous capacity to retain trivia .

BTW

It was actually Chiu and Stroll who bought the LAGERFELD GALLERY rights from Dame Karla and his present backers , under the Hilfiger coglom banner .

Delve into the money side of ' labels ' and it's surprising who actually holds the purse strings .

Perhaps they will sell Tommy up , one day ?

' LAGERFELD ' has SUCH a more resonant sound to it , now doesn't it ?

 

[kit]

Further to the above , I remembered last evening that Chiu and Stroll ALSO own MICHAEL KORS , which is why Kors was talked of as designer for ASPREY , to take over from Hussein Chulayan , when the KORS label was sold by LVMH and Kors left CELINE .


A large conglomerate indeed !!!

The plot thickens.................B)

I'm a GREAT believer in conspiracy theories .

 

[softgrey]

lordy kit- interesting indeed...
i am not into conspiracy theories...but i have heard the line 'follow the money'...
it is indeed fascinating to see where it all leads back to...

thanks for keeping us all informed..
especially since my mind is a sieve when it comes to the business stuff...

but ask me what kind of buttons were on a dress from the 70's...and i'm on it!!...
...

 

[Scott]

i never said that the MMM sales are suffering, its the creativity level that has the -big- problem softie

Agreed. I think what he's doing now has become rather plain looking. There's nothing really inspiring in the work itself anymore.

And to add to the argument,it has been said to me as well,that even the quality has gone down a notch...since being bought by Diesel.

 

[Astrid21]

Thank you for all of the updates, guys. I don't really have much to add to the subject at hand...I just want Helmut to come back. B)

 

[tott]

This is really intersting, you learn so many things here at tFS!

 

[Lena]

http://www.thefashionspot.com/forums/showthread.php?t=26243

for those interested to know what's in mr Prada's mind