Chiara Ferragni's Empire Faces Financial Turmoil: Revenue Plummets and Recapitalization Efforts Underway Following 'Pandoro-Gate'

Chiara Ferragni's fashion empire is currently facing significant financial challenges. The downturn follows the controversy known as "pandoro-gate," which involved accusations of misleading marketing practices related to a charity initiative with Balocco. The brand allegedly implied that increased sales of a special edition Christmas cake would directly benefit a children's hospital, while the donation was reportedly pre-arranged and significantly smaller than the profits generated. Fenice, the company managing the Chiara Ferragni brand, has experienced a sharp decline in revenue, falling from €14 million in 2022 to just €2 million in 2024. Accumulated losses for 2023 and the first eleven months of 2024 total €10.2 million, effectively wiping out the company's equity. This financial strain has necessitated a recapitalization effort of €6.2 million. In addition to these financial difficulties, the company is also reportedly experiencing a crisis with one of its long-standing partners, Pasquale Morgese.