Monday, October 8, 2012

Prada Loses Senior Managers

Prada has lost a third of its top-level management staff since becoming a public company last year. Five of the luxury brand's 14 senior managers departed the company in the nine months following its initial public offering.

In its IPO report published in June
2011, Prada listed 14 senior managers responsible for the company's day-to-day running, reports the Financial Times. The 2011 annual report published earlier this year listed only nine.
"That's a lot of turnover and it definitely raises some red flags," said Richard Jacovitz, director of research at Liberum Research, a company that studies management changes within public companies. "You tend to have more turnover in fashion companies like Prada because there are lots of egos involved, but that many departures in such a short period is a lot even for a fashion company."
Prada's stock has risen by almost 50 per cent since becoming a public company, with annual profit rising 72 per cent to €432 million (£349 million).
Prada has so far declined to comment on the departures. 

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