Before undergoing a change in ownership with Bain Capital and MV Credit, the Pronovias Group, a prominent Spanish bridal fashion firm, reported consolidated net losses of €326 million for the fiscal year 2022. These losses were primarily attributed to balance sheet adjustments made by the company.
According to the financial statement of Catiberia Acquisition Holdco, which consolidates the group’s activities, the losses amounted to €310 million and were a result of impairments carried out by Pronovias. These impairments were predominantly related to the group’s goodwill, amounting to €226 million, with the customer portfolio and intellectual property accounting for €22.1 million and €61.6 million, respectively.
These impairments were calculated while taking into consideration the impact of the global health crisis on the bridal industry and the company’s operations. Prudent estimates were made for the upcoming fiscal years, anticipating moderate yet sustained growth.
The bridal fashion company faced significant challenges due to the pandemic. Although its revenues increased by 52 percent in 2022 to reach €149 million, they remained below pre-pandemic levels.
After BC Partners departed from the company at the end of the previous year, Bain Capital and MV Credit assumed control. In April 2023, the new owners announced the formation of a new board of directors to guide the company in its next phase. They also provided a capital injection of €211 million to reduce the company’s debt and implement its recovery plan. One notable development is the appointment of Marc Calabia, the former CEO of Springfield, as the new CEO of the bridal giant. The executive is expected to unveil a new strategic plan for the company in the near future.
