The royalties of Fenice, the company that licenses the “Chiara Ferragni” brand, are at risk. The royalties were valued at 4.6 million in the 2021 budget. Four years after the resolution of the contract by the Bergamo company, the decision was made “in accordance with its own corporate code of ethics, which excludes collaboration with third parties sanctioned by the competent authorities for adopting unethical, correct behavior, and respectful of the laws.”
The dispute will be resolved in court. This communication became necessary after the case of Balocco’s pandoro and the latest news regarding the investigations of the Milan prosecutor’s office, which has already initiated inquiries into the collaboration relationships of the businesswoman. Not only with Balocco, but also with Dolci Preziosi and with the manufacturer of the Trudi doll.
The multi-year agreement with the eyewear company was announced in 2021 and had a concrete impact on the company’s stock market performance. After the news of the partnership, the stock had risen, gaining up to 13%. It is estimated that Safilo had earned up to 50 million euros at the time.
The “Ferragni effect” has backfired now that the influencer is at the center of controversy after the million-euro fine imposed on her two companies Fenice and TBS Crew, which manage part of her licenses. Coca Cola also reportedly halted a commercial featuring Ferragni, which was scheduled to air at the end of January. Over the years, Ferragni has signed several partnerships and contracts.
Among the most notable is the five-year licensing agreement with Monnalisa to create children’s clothing and suits starting from the fall 2021 collection. Ferragni also remains the face of Pantene. The most recent agreement is said to have been signed in 2023 with Arval Cosmetici.
The partnership with Nespresso dates back to 2021, including the opening of a Temporary Cafe in Milan and a limited edition collection presented in March 2023. The Aeffe group also has a licensing agreement with Chiara Ferragni. In detail, a multi-year licensing agreement with Velmar, a company within the group specializing in intimate apparel and swimwear.
Licenses were also granted with Swinger between 2020 and 2021, for jewelry with Morellato, as well as with Mofra, specializing in footwear, and Nanan, specializing in products for children. Fenice has a turnover of 61 million euros and closed 2022 with revenues of 14.2 million, a 115% increase over 2021. The net revenues of its second company, Tbs Crew, increased from 7.1 million in 2021 to 14.6 million in 2022 (+105%).
In 2023, Fenice is expected to reach 71 million and Tbs Crew is projected to reach 18.9 million euros, with total net profits of 8.5 million.