mikeijames
no tom ford, no thanks.
- Joined
- Nov 27, 2003
- Messages
- 5,879
- Reaction score
- 5
STELLA'S AT A LOSS
STELLA MCCARTNEY has fuelled rumours that her Gucci-owned company is floundering after posting loses of £4.5 million for 2003 on sales of just £434,611. Pre-tax loses at Stella McCartney Limited, one of today's most famous fashion names, have almost doubled since last year's loss of £2.7 million. Stella, who got married earlier this year and was the subject of a primetime BBC documentary, is also thought to be under threat because of the unsettled management situation at Gucci, which paid £6 million for a 50 per cent stake in her company in 2001. With Tom Ford, who was key in luring Stella to Gucci when she left Chloe, and his partner Domenico de Sole on the way out, industry sources are worried that Gucci may have to sell off some of its more recent acquisitions - news that would not bode well for Stella or her stable mate, Alexander McQueen. According to Companies House accounts, Gucci injected £2.8 million into McCartney's business last year, only to bail her out again, with an undisclosed amount, last April "to enable the company to pay its liabilities". They also revealed that Stella McCartney Ltd's 12 staff, including 9 designers, were paid an average of £128,000 each. The company insisted, however, that all the financial results were "in line with the agreed business plan". While the figures can, to some extent, be blamed on Stella's brand-establishing investment - she has opened stores in London, New York and Los Angeles and launched her debut fragrance this year - industry insiders have put the figures down to a lack of cohesion in her famously pricey collections. Some buyers, however, are determined to see her through. "She had a tricky first couple of seasons but sells well," says Ivan Donovan, a buyer for Browns, South Molton Street. "This does look like a big loss for her to catch up with but her collections are continuing to improve and her customers are on the increase." (December 9 2003, AM)
http://www.vogue.co.uk/vogue_daily/story/s...4222&date=&sid=