Prada In Talks To Sell Helmut Lang

Prada is in talks to sell the minimalist fashion label Helmut Lang, after six loss-making years in control of the German-listed brand. The Milan-based luxury goods house is understood to be in talks with parties that include Tommy Hilfiger and Diesel, as well as private equity firms, over the sale of the brand, which has an estimated worth of up to EUR100 million (£52 million).

It comes just three months after Prada parted company with the man behind the brand, the designer Helmut Lang himself, and consolidated its hold over the company with the acquisition of his 49 per cent stake. Mr Lang's departure from the company he founded 19 years ago is understood to have been triggered by a conflict with Patrizio Bertelli, chief executive, over strategy.

The departure of the 49-year-old Austrian has prompted questions about the value of the company without its key asset. It also stoked speculation the business could be put up for sale. Prada bought a 51-per-cent stake in Helmut Lang in 1999 amid an acquisition frenzy that saw the group add half a dozen other companies to its books. After its acquisition, the brand was repositioned at the high end of the market, neglecting areas of strength such as its jeans line. Despite its promise of minimalist cool, the label failed to deliver profits. In 2003, the latest year for which figures are available, sale