Pronovias reports losses of €326 million prior to change in ownership

The Pronovias Group, prior to its change in ownership and acquisition by Bain Capital and MV Credit, recorded consolidated net losses of €326 million for the fiscal year 2022. These negative results were primarily due to balance sheet adjustments undertaken by the company.

According to the financial newspaper Cinco Días, based on the financial statement filed with the Commercial Registry by Catiberia Acquisition Holdco, the entity that consolidates the group’s activities, these losses were incurred as a result of impairments carried out by Pronovias, amounting to €310 million.

The majority of these impairments, €226 million, were attributed to the group’s goodwill, with €22.1 million affecting the customer portfolio and €61.6 million related to intellectual property.

The company factored in the impact of the pandemic on the bridal industry and its business operations while assessing these impairments. Furthermore, it developed “prudent” projections for the coming fiscal years, anticipating “moderate yet sustained” growth, as detailed by the aforementioned media outlet.

The global health crisis significantly affected the bridal fashion firm. In 2022, the company saw a 52% increase in its revenues to reach €149 million, although these figures remained below pre-pandemic levels.

Towards the end of the previous year, Bain Capital and MV Credit assumed control of the company following BC Partners’ exit. In April 2023, the new owners revealed the formation of a new board of directors to guide the firm in its new chapter, accompanied by a capital injection of €211 million aimed at reducing the company’s debt and executing its recovery plan.

Among its recent developments, the appointment of Marc Calabia, former CEO of Springfield, as the new CEO of the bridal giant stands out. The executive will soon unveil a new strategic plan for the company.