Chiara Ferragni Closes Rome Store and Embarks on Brand Restructuring

Chiara Ferragni

Chiara Ferragni, one of Italy’s leading fashion influencers and entrepreneurs, has announced the closure of the Rome flagship store of her namesake brand. The store, which opened in the fall of 2023, is shutting down in less than a year, marking a major step in a broader overhaul of the brand’s structure and strategy.

According to the brand’s parent company, Fenice srl, this decision is part of a long-term strategy to redefine the brand’s positioning and reinforce its presence in the market. It was also revealed that Ferragni herself fully underwrote a capital increase of €6.4 million, raising her ownership stake to nearly 100%. “This restyling is part of our long-term strategic vision to revive the brand’s positioning and strengthen its market presence,” Ferragni stated in an official release.

In addition, Fenice announced the liquidation of its retail subsidiary, Fenice Retail srl. This move is aimed at streamlining the company’s structure and focusing on areas with greater strategic value. Alongside the closure of physical stores, the company is also revisiting its online and offline sales approach, with the goal of enhancing digital visibility and optimizing the performance of physical retail locations.

The Rome store, located on Via del Babuino, garnered significant attention at its launch. However, it also sparked controversy due to a promotional campaign that required a minimum purchase of €150 to participate. Furthermore, on January 1, 2024, the store became the target of vandalism when unknown individuals defaced its storefront with graffiti, including words such as “bandita” and “truffatrice”. The incident was widely interpreted as a backlash against Ferragni’s involvement in charitable product promotions linked to Dolci Preziosi Easter eggs and Balocco’s holiday pandoro cakes.

Originally presented as charitable initiatives, the actual allocation of funds was later scrutinized by consumer rights group Codacons and the public prosecutor. After months of legal tension, Ferragni ultimately reached a settlement, compensating affected consumers and donating €200,000 to a charity that supports women who have suffered from domestic violence.

The brand’s financial performance has also seen significant fluctuations. In 2023, revenue dropped from €14.3 million to between €11 and 12 million. The situation worsened in 2024, with revenue falling below €2 million by the end of November. According to media reports, the company’s cumulative losses across 2023 and 2024 are estimated to total around €10 million.

Nevertheless, the company has maintained a forward-looking stance toward recovery despite the difficult circumstances. Structural reforms are steadily progressing, including significant cost reductions, a halving of staff, and the relocation to the headquarters of Ferragni’s personal holding company, Sisterhood.

Fenice stated that the relaunch is grounded in the core principles of transparency and reliability, with the initial results of the new strategy expected to become visible in the second half of 2025.

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