The designer holds the co-chief executive officer title at the Prada company with her husband Patrizio Bertelli. The transaction has led to the termination of the franchise agreement with Fratelli Prada dated Jan. 25, 2017 and which ends on Jan. 31, 2020.
Following the acquisition, Fratelli Prada has become a wholly owned subsidiary of the Milan-based fashion company, which is listed on the Hong Kong Stock Exchange.
The Prada stores in Milan have historically been operated by companies that are connected to the Prada family, but in 2009 the group entered into a franchise agreement in relation to the Prada stores based in Milan with five companies that operated the stores and their controlling entity, which all subsequently merged with Fratelli Prada.
There are four Prada stores operated by Fratelli Prada in Milan, including the first storied unit in Galleria Vittorio Emanuele II that opened in 1913. Fratelli Prada owns the real estate occupied by the Via Della Spiga store and leases the real estate of the other stores from unrelated third parties.
It was assumed the franchise agreement would expire on Jan. 31, 2024 and subsequently could have been automatically renewed for a further 15 years until Jan. 31, 2039.
The stores in Milan are “essential to the global presence and brand image of the group” and the new agreement “will present a new opportunity for the group to directly manage and operate the commercial retail activity of all Prada stores in Milan where it is a key part of the commercial, financial, tourism and cultural center in Italy.”
The direct management of the stores “will be an important step in further developing and extending the group’s brand identity,” explained the company.