The encyclopedia · Strategy & Leadership · Strategic decision · 2023–2025
Chiara Ferragni's retail arm lost €1.2M in two years — both stores closed
Fenice Retail, the subsidiary managing Chiara Ferragni's physical stores, was liquidated in May 2025 after accumulating €1.2M in losses.
Fenice Retail · Fenice Srl · 2025-05-31
What happened
Fenice Retail was the wholly owned subsidiary of Fenice Srl, the company through which Italian influencer Chiara Ferragni managed her brand. It operated two flagship stores: one on Corso Como in Milan and another on Via del Babuino in Rome. The stores sold Ferragni-branded clothing, accessories, and lifestyle products.
The retail arm never turned a profit. In 2023 it lost €530,000 on revenues of €644,000, with costs approaching €2 million. In 2024 the loss widened to €684,000, worsened by the Pandoro Gate scandal that erupted in December 2023, which damaged Ferragni's brand reputation and foot traffic. The Milan store closed in 2024, leaving only the Rome location.
In March 2025, during a Fenice shareholders' meeting, the sole director confirmed they were seeking the best path for a solvent liquidation of Fenice Retail. In April 2025, Ferragni injected €6.4 million into Fenice via a capital increase, bringing her stake to 99.8%. By May 2025, Fenice Retail was placed into liquidation. The Rome store closed, ending Ferragni's physical retail presence.
Why it happened
- Fenice Retail's stores cost nearly €2M a year but generated only €644K — flagship store economics never worked for a personal brand with a limited product range
- The Pandoro Gate scandal in December 2023 destroyed brand reputation when the retail business needed foot traffic — the €684K loss was directly worsened by the scandal
- Ferragni's €6.4M capital injection saved the parent company but could not save the retail arm — the stores were structurally unprofitable and the brand damage made recovery impossible
The lesson
A personal brand's flagship stores are marketing expenses, not profit centers. When the brand takes a hit, the stores that were already losing money become liabilities that must be cut.
Sources
- Forbes Italia — Fenice Retail in liquidation, lost €1.2M in two years (Jun 2025)
- FashionNetwork — Chiara Ferragni's Fenice Retail goes into liquidation (May 2025)
- Il Messaggero — Chiara Ferragni's retail setback
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