We Belong Together, Prada reviews Versace for potential acquisition
Prada (OTC: PRDSY) SpA, the Milan-based luxury fashion company, is reportedly considering a bid for fellow Italian fashion brand, Versace, which is currently under the ownership of Capri Holdings (NYSE: CPRI) Ltd, according to a Wednesday report by Bloomberg.
The company is working with advisers to assess the Versace brand, following a comprehensive review initiated after gaining access to Versace's recent financial and sales data.
The review process is part of Prada's evaluation for a potential bid. However, it is important to note that the review doesn't necessarily mean that a formal offer will be made.
Prada has been a notable exception in the recent downturn experienced by the luxury sector. As it evaluates Versace, the company continues to maintain its strong position within the industry. The potential acquisition of Versace could further strengthen Prada's portfolio, but it remains to be seen if a formal offer will be presented following the review.
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Nikola (NASDAQ: NKLA): files for Chapter 11 bankruptcy protection
Nikola Corporation a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, today announced that the Company and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Nikola has also filed a motion seeking authorization to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code.
Nikola has filed several customaries "first day" motions with the Court to ensure its limited operations are able to continue, including authorization to meet its obligations to employees, during the sale process. Subject to Court approval, the Company intends to continue certain limited directly provided (non-dealer) service and support operations for trucks currently in the field, including certain HYLA fueling operations through the end of March 2025. Thereafter, the Company will need one or more partners to support such activities.
Nikola enters Chapter 11 with approximately $47 million in cash on hand to fund the foregoing activities, implement the post-petition sale process, and exit Chapter 11 through a plan process. Given the Company's liquidity profile and the anticipated expense of the cases and limited operations in Chapter 11, the Company intends to request authority from the Court to consummate a sale of its assets on a timeline that balances its liquidity needs with its significant prepetition marketing efforts to best position the Company to maximize value for its stakeholders.
"With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emissions transportation forward, including bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America and developing the HYLA hydrogen refueling highway, connecting Northern California to Southern California," said Steve Girsky, President and CEO of Nikola. "Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen. Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate. In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders."