Monday, December 6, 2010

Prada Borrowing Cash To Pay Debts

The fashion house Prada SpA is borrowing some ca$$h in the amount of 360 million Euros to refinance a long-standing debt and to help increase retail growth.

The companys' debt, totalling 640 million Euros, accumulated in the 90s and resulted from the acquisition of brands such as Jil Sander, Helmut Lang and Fendi.

Prada is focusing on expansion with plans to open 30 new stores this year and hopes the stores will boost retail sales enough to pay off their hefty new loan.

Hopefully the new stores will bring in some money for the fashion house otherwise they might be facing a tough road ahead.

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