Prada sells stake in Church's

A 45 per cent stake of Prada owned British luxury shoe firm Church will be sold to Equinox private equity fund for an undisclosed sum. Prada and Luxembourg-based Equinox Investment, owned by Italy's biggest banks and industrial groups including Banca Intesa and the Pirelli group, said in a joint statement the preliminary agreement was signed this week.

The two companies's said they would support Church's Group expansion in Europe, America and Asia in the next few years. "Prada has successfully concluded the restructuring and relaunching phase of Church's," Prada Group Chief Executive Patrizio Bertelli said in a statement. "Now, an agreement with a financial partner like Equinox ... will allow us to execute an important growth plan for one of our most prestigious brands, accompanied by a noteworthy expansion of its product," he added.

Prada is reported to have debts of around one billion euros and its latest disposal follows the sale of its 25 per cent stake in fashion label Fendi for 295 million euros in late 2001.