Prada pays Miuccia Prada Bianchi $73M to take over Milan stores
04/11/2019
Prada said in a statement that the move “will be an important step in further developing and extending the group’s brand identity”.
According to Bloomberg, designer Prada Bianchi has run the Milan-based fashion house since the late 1970s with her husband and co-CEO Patrizio Bertelli. When Prada went public in their 2011 Hong Kong listing, the Prada family chose not to include the founding Milan boutiques (including Prada’s first-ever store in Galleria Vittorio Emanuele II, pictured) in the deal.
Prada’s parent company reported 19.7 million euros of profit last year related to its franchise agreement for the Milan stores, according to Bloomberg. Earnings per share have fallen more than 60% since 2014, and sales were flat for the first half of 2019. The company has said it is cutting its wholesale business by half, in an effort to gain more control over merchandise by selling more of it in Prada’s own stores.
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