Will 2025 be the year of Pronovias’ financial recovery?

Spanish bridal fashion group Pronovias has had a challenging business journey marked by ownership changes, financial restructuring and nearly a decade of persistent losses. The company faces the challenge of putting one of the most complicated periods in its history behind it in 2025.

Thanks to a capital injection of 30 million euros from the current owners Bain Capital and MV Credit, together with the American investment company Clearlake after the acquisition of MV Credit in September, the bridal fashion company is counting on a new management team and a rescue plan aimed at restoring stability.

The task will not be easy. But after eight years of losses, the goal is ambitious but clear: regain the position as market leader on the international market.

From family business to investor-owned company: A complex journey

Pronovias’ biggest challenge lies in its high debt burden and accumulated losses in recent years.

At the end of 2024, after the audit of the 2023 annual accounts, the bridal fashion company confirmed a turnover of 135.8 million euros, a decrease of 8.9 percent compared to the previous financial year. The final annual balance sheet revealed a worrying figure: a net loss of 128.5 million euros.

This negative result was not only due to the difficult operating environment, but is also closely linked to accounting adjustment that reflects the overvaluation of the company’s intangible assets following the acquisition in 2017 by the investment fund BC Partners, which owned 90 percent of the company acquired for a price of almost 550 million euros.

This changing of the guard marked the end of the family business and the beginning of a period led by financial investors. However, the transaction left Pronovias with a fragile financial structure and a significant debt burden that to this day limits investment capacity and poses serious problems in implementing a sustainable growth plan.

The arrival of Bain Capital and MV Credit: A new direction

At the end of 2022, the Pronovias Group became owned by a consortium led by the American consultancy Bain Capital and the European investment company MV Credit, two major players in the investment world who took over ownership following an agreement with BC Partners.

The transaction included a debt reduction from EUR 385 million to EUR 125 million and a capital injection intended to strengthen the financial structure and stabilize activities. Over the course of 2024, the current owners have contributed a further €30 million as part of a rescue plan aimed at ensuring the long-term viability of the company, with financial support supplemented by new leadership and an ambitious strategic plan.

A strategic plan until 2027

In May 2024, Marc Calabia, former director at Tendam, took over as CEO of Pronovias with the mission to address the group’s challenges and lead the new strategic plan, with a deadline of 2027, which includes four fundamental establishes pillars to strengthen Pronovias’ position in the global bridal fashion market.

One of the main axes of this strategy is profit improvement, which led the company to make difficult decisions, such as requesting a collective redundancy (ERE) at the headquarters in Barcelona shortly after the arrival of the new CEO. This announcement led to strong opposition from workers, who mobilized and protested against the measure. However, following a negotiation process, the number of affected employees was reduced from the initially proposed 85 to 64.

In addition to cost optimization, increasing sales in key markets is another important objective of the company. The US has become the main target for expansion as it is a strategic market with high growth potential. Pronovias plans to implement a more dynamic commercial strategy, combining the strengthening of the distribution network with new partnerships that will allow it to strengthen its presence in the country.

Diversification of the product range is also a pillar of this ambitious plan. Conscious of the need to adapt to new market demands, the company aims to go beyond the traditional line of wedding dresses and explore new product categories, in addition to developing additional brands that strengthen the offering and attract different customer segments.

In addition, Pronovias wants to review and improve both the physical points of sale and the digital channels, with the aim of offering a seamless shopping experience that is in line with current consumption habits, where omnichannel (providing seamless customer experience across different sales and communication tools, ed.) plays a fundamental role.

Back to the path of growth

Despite the measures taken, the strategic changes and restructuring operations have not yet translated into a tangible improvement in Pronovias’ financial results.

Nevertheless, the company is confident that the support of Bain Capital and MV Credit, combined with the implementation of the strategic plan, will allow it to get back on the growth path from 2025 onwards. Pronovias’ recovery will not be without obstacles, but the support of major investors and the implementation of an ambitious strategic plan provide a solid basis to look to the future with caution, but also with hope.

If the company manages to successfully implement its plans, 2025 could be the turning point for Pronovias. The Spanish bridal fashion group, which includes the brands Pronovias, Vera Wang Bride and the Dutch Ladybird in its portfolio, is said to be a renewed and strengthened competitor on the market.