47 million euros to rescue Cavalli. Raf Simons leaves a deficit of several million in Calvin Klein’s balance sheet

Roberto Cavalli needs 47 million euros to get over crisis. The news, reported by La Stampa, hints at further information about the agreement petition the company filed at the Court of Milan on Monday. They have already registered it at the Chamber of Commerce. Things and figures about the Florentine fashion brand look more complicated anyway. MFF has reported a press release, issued by President Emiliano Nitti to reply to trade unions, who asked him to shed some light on the matter. He denied any comments he allegedly made during the crisis board meeting and clarified Cavalli’s financial situation: under the current management, the brand gained 100 million euros, after selling off a real estate, and 40 million euros, after renegotiating a licence agreement. CK’s troubles          

Calvin Klein are facing heavy problems after Raf Simons quit, which caused the company to suspend their 205W39NYC premium line. In addition, they shut down their flagship store in New York, and fired around 100 employees in Milan and New York. Because of all that, the brand was expecting to spend 190 million dollars for rebranding. Such was their plan. Yet, those estimated costs prove to be wrong now, as expected expenses amount to 240 million dollars. In fact, the company is supposed to get back and cancel all investments previously made with Raf Simons, just a couple of years ago, to raise the brand’s standard. As reported by WWD, PVH are going to spend about 65.7 million dollars on severance pays and layoffs, 55 million dollars on asset depreciation, including the shutdown of New York flagship store and the closedown of activities related to the product line they suspended. Moreover, they will also have to pay 45 million dollars owing to early termination of leases and contracts; finally, they will lose 5 million dollars due to depreciation of goods in stock. Michelle Kessler-Sanders, president of the premium line, is going to quit the company in June. Even though the brand did benefit from some rewarding accomplishments, in terms of sales, such costs, beyond estimates, will inevitably affect profits.                                                                                                                                                                          


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