prada’s development in 21th century

Prada manufactures its wares in Italy, apparently keeping labour costs down by using Chinese labourers in their Italian plants.

It suspended to merging and purchasing in 2000s, however, a loose agreement was signed in with Azzedine Alaia. Personal skin care products were introduced in the United States in October 2000 (a 30-day supply of cleansing lotion going for the retail price of US$100). To help pay off debts of over US$850 million, the company planned on offering 30% of the company on the Milan Stock Exchange to the public on June 2001. However, the offering was slowed down after a decline in luxury goods spending in the United States and Japan. In 2001, under the pressure of his bankers, Bertelli also sold all of Prada’s 25.5% share in Fendi to LVMH to help reduce Prada’s debt. He raised only US$295 million.

By 2006, the Helmut Lang, Amy Fairclough and Jil Sander labels were sold. Jil Sander was sold to the private equity firm Change Capital Partners, which is headed by Luc Vandevelde, the chairman of Carrefour, while the Helmut Lang label is now owned by Japanese fashion company Link Theory. Prada is still recovering from the Fendi debt. More recently, a 45% stake of the Church & Company brand has been sold to Equinox.

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