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MILAN, Italy — Prada SpA, the Italian fashion brand, will pay €66 million to a descendant of its namesake family to take control of four company stores in Milan — including its first-ever location that has operated since 1913.
The company, which is listed in Hong Kong, said it reached an agreement with Miuccia Prada Bianchi and a holding company she controls for the stores. The move "will be important step in further developing and extending the group's brand identity," according to a company statement.
Prada stock has fallen 6 percent so far this year, trailing the 3.6 percent return for the Hong Kong’s Hang Seng index. Prada Bianchi is co-chief executive officer of the Prada SpA.
The Milan stores have historically been operated by companies connected to the Prada family. The parent company reported €19.7 million of profit related to its franchise agreement for the Milan stores.
By Jonathan Roeder, Robert Williams; Editors: Anne Riley Moffat, Hari Govind