Luxury clothing label Prada is in severe financial trouble, according to reports revealed today.

In 2003, the latest year for which performance has been reported, Prada suffered a loss if almost £1 million in its UK market.
The design house also saw tumbling sales for the second year in a row, with turnover dropping from £24.4m to £23.5m.

Luxury goods experts have said the label's misfortune can be partly traced back to the turbulence it experienced when stock markets saw a downturn as a result of the September 11 terrorist attacks.

Prada has recently been making heavy investments in its British businesses, which included a costly refurbishment of its London store.

The company has been trying to lessen its debt to prepare for a third attempt to float the business on the stock market.