Inside the Brand’s Luxury Comeback

MILAN — La Perla was never tarnished, “it just quietly disappeared,” leaving a gap in the market, said its new owner, American industrial entrepreneur Peter Kern, who is set to return the brand to the international scene.

Last year, through the Luxury Holdings II LLC, Kern and his wife Kirsten acquired La Perla, which had been declared insolvent after changing hands for years. The founding Masotti family first sold it to JH Partners in 2007 then Silvio Scaglia bought it in 2013, and finally it was sold in 2018 to Tennor, then called Sapinda.

Kern rehired La Perla’s seamstresses with the goal to keep manufacturing the brand in Italy, mainly in the Bologna headquarters. Ahead of the official launch of its collection in June, Harrods will host the first La Perla Atelier Event format, a private, one-to-one invitation-only experience from Thursday to Sunday, inside the store’s lingerie VIP Lounge and with artisans coming from Bologna to offer their expertise for a perfect fit.

Here, Kern, who was previously chief executive officer of Expedia, elaborates on his new line of business, what drew him and his wife Kirsten to La Perla and the potential of the brand.

WWD: Rescuing La Perla was quite a change from your previous duties, although I know you enjoy living in Italy and you have diversified your businesses, investing in Tuscan vineyards. Why did you decide to buy La Perla?

Peter Kern: It’s an answer from two directions, which is, on the one hand, Expedia was the last corporate job that I really wanted. I ran a number of large companies and had been in business for a long time and when I left, while I was hanging up my corporate shoes, Kirsten and I had taken on this project, which we were quite passionate about, which is the winery in Montalcino. Just to be clear, we were not one of those couples who wanted a hobby vineyard somewhere — we bought a business, we built it and we’ve grown it. We’ve improved the wines and the distribution. We are quite serious about the business and the art of winemaking. That’s how we approach things, not like, this is our retirement, we’re just going to go sit around and look at the pretty vines. One of the areas we were also looking at and interested investing in was historic brands. And I’ll explain a little bit why. Because when I left the technology world and I saw what AI was doing, I basically concluded that if you wanted to invest or own businesses, you should invest in AI, or you should invest in these enduring products and brands and experiences that were not replicable or could be dislodged by AI.

So, someday, maybe robots will figure it out, but as far as I’m concerned, nobody can make lingerie like the women at La Perla. They’re phenomenal seamstresses and artisans and designers and these things, these brands and these crafts endure through whatever change we may see from AI. So that was kind of in our heads, and La Perla is a brand Kirsten has known for 30 years, that she wears every day, has done for most of her adult life, it’s a brand we’ve loved, a product we’ve appreciated. When we learned that it was in trouble and there was this opportunity, we began to investigate it again, like business people, not because we love the product and the brand, but was there a way that to make it make sense from a business standpoint? We wanted it to be saved, just as a customer, we wanted the product back, but we had to believe that it could be revived. Once we did the work, understood what had happened, what had gone wrong, what we thought we could do with it, we concluded that it was not only something that needed and had to be revived, but it was something that could be a great business again. That’s why we decided to invest and take the chance. We really have, obviously, great, great reverence for Italian craftsmanship and we felt like there was an opportunity there.

WWD: You say this is not only about reviving the brand, as you also see its growth potential. How do you view this in light of the competition in the segment from low- or mid-priced products?

P.K.: Absolutely without a question. Everywhere we go, anywhere in the world, literally, and you say the words La Perla at a dinner table, the woman at the table will say, “Oh, La Perla is the best.” La Perla is one of one. It is the standard for luxury lingerie around the world. Obviously, unfortunately, it’s costly to source the raw materials and to sew the products at the level that it takes for us to sew them, and the craft that goes into it is not an inexpensive endeavor. Yes, the products are expensive, retailing from 210 euros up to 600 euros for a bra, and therefore, clearly not for everybody, unfortunately, but for people who can afford it, whether that’s their whole wardrobe, or a few pieces, they want the best. And unlike any other product, really, lingerie is really about how it makes the consumer feel.

Increasingly, we’re getting to see it publicly, but most of the time it’s not for display. It’s about the wearer and I think women love to have it. And I will tell you in this process, we have heard many stories. We don’t have daughters, but many stories of women who got it as the first set from their mother when they turned 18, or when they got married. There’s a whole tradition and this is what you aspire to. I know there are big luxury brands that are struggling because China’s not as strong, but those are big. We’re starting from zero. They’re starting from fully distributed, with the biggest numbers they’ve ever done, so anytime there’s a little bit of down pressure, they feel it. For us, it’s all opportunity. The customer base is out there. We hear from them all the time, they come to us, they can simply sign up for Salon Privé, which is an insider [opportunity] on our website and we’ve had tens of thousands of women sign up, and that’s the kind of evidence of the passion that consumers feel for the product. Therefore, we believe it can be a big business again, bigger than it’s ever been and that the mass or premium lines that have been successful, they’re great, and that works for a big part of the consumer base. But many others want products that are made of the finest things in the finest way. We can all succeed, it’s not one or the other.

WWD: Hiring back the seamstresses was a priority for you.

P.K.: We wouldn’t have done it without them. I don’t know [who the other potential buyers] were but we heard rumors about moving production to China, but why would you even do it? Yes, I’m sure there was some industrial logic for somebody to just use the brand and put it on something of lesser quality and call it the same and see what happens. We came at it with great admiration and love for the product and I think that’s what makes every great brand in the luxury space great — quality and consistency. There’s a library of 70 years of La Perla, basically setting the path of lingerie. Every design was knocked off by everybody else, every design was beautiful and elegant, but also leading the way for where lingerie would go. We’ve done that for 70 years, and we will do that again.

WWD: How do you envision the product offer?

P.K.: We view lingerie as our true DNA, but those designs and those techniques are applicable and valuable in sleepwear, loungewear and swimwear. I’ve walked past the ad on the third floor of our office, which is for a pair of jeans, and it’s a beautiful ad campaign, but I just look at it every time and think, “What were we thinking? Why would we do that?” And as I tell the team all the time, in our core, we are one of one. We are the best. There’s no comparison. Whenever we go into anything else, we’re competing with dozens of players, whether it’s ready-to-wear or anything else. I think we have the birthright of the slipdress, of the lingerie dress, of these pieces that involve lace and silk and have become outerwear. So, yes, we still make slips and people love them, and there are people who collect them but we will do interesting creative things coming from this core place of our ability to work with lace, with silk, with other fabrics to make beautiful pieces that sometimes extend a little bit beyond just the core lingerie, and we think of them as embellishments, sort of highlighting our craft in a variety of ways. So, we’re not going to design jeans and we’re not going to design menswear anytime soon, maybe ever.

WWD: What are your plans in terms of distribution?

P.K.: The existing stores are all gone. Initially, we started by going back in the most high touch way, partly because it takes time to roll out our new line, and we had a lot of customers who were dying to get product, and we [planned] trunk shows. Our next one is at Harrods [May] 7 to 10. This is what’s unique about us; no lingerie company could ever do a trunk show, we’re the only ones, because we can make these products on a one-off basis for customers. We will have a seamstress there, an artisan who will help people with sizing and fit and make sure they’re wearing everything correctly, and then we have opportunities for consumers to play, in some cases, with some color combinations or embellishments that we can do with bead work and other things. It’s a real experience that hasn’t existed in lingerie before. We have also reopened our private client business, so we have our concierge team taking care of our top clients, including celebrities, on a one-to-one basis.

WWD: What can you tell us about the Salon Privé experience?

P.K.: It’s not just online, put your credit card in and you’re gone. This is very individually oriented and that is rolling into the debut of our first line, which will be in June and go into full production and be available in retail stores starting in November. Think of the top retail stores in the world. We are working also on a store plan. Historically, we believe [the previous owners] built too many stores, in many cases, they were too large, and they owned and operated all of them. We don’t want to do that. We don’t think that’s right for the brand we want. We are currently designing the new stores, but they will be smaller and more intimate, set up to handle private client appointments as well as just walk-in customers, so a little bit of a more intimate feel and we will be more selective about where they are. I think we’ll have owned and operated stores in Western Europe and the U.S. in select cities, and partners in places like the Middle East and Asia or Eastern Europe, where we would rather have best-in-class partners to operate our stores in those markets than to operate them ourselves.

WWD: Are there La Perla stores in the pipeline?

P.K.: Yes, by next year and we would love it if the first were in Milano, we’ve been looking at properties. However, one of the things about it [being funded by] personal money is that we can do it the right way and take our time so if the right place doesn’t come along in Milano, we’re not just going to take a store to have a store. And equally, if the right place came along in, let’s say Paris or New York before, it’s possible we could go there first. We’re excited about that, and we’ve had some close calls, but we haven’t done anything yet. We’re excited for the new format, with a more modern design, but we also plan to continue doing trunk shows and private appointments; I think that’s part of what makes us special. We are also bringing back our bespoke business where, if people want to buy made-to-measure for their wedding, for their trousseau, etc., we will have that available in Bologna as well, or potentially go to them, depending on the client.

WWD: You mentioned Harrods, so I imagine you will work with department stores.

P.K.: Yes, with the best ones around the world and specialty boutiques, and high-end resort stores. Actually, I have ambitions on being in some stores that historically don’t carry lingerie, because I feel like, if you’re selling [luxury brands], people need foundation and La Perla is what they will want.

WWD: Why do you think La Perla’s image is still strong, despite all the changes and financial problems?

P.K.: It’s really interesting and some business school will maybe do a study someday. La Perla, unlike many companies that have faced financial problems, sort of quietly disappeared. The best thing about it, in many respects, is the product, the quality, the craftsmanship and the brand never really suffered. I think people just wondered where did it go exactly, and, in many cases, they haven’t been able to replace it and they miss it. When we talk to retailers, they’re like, “Oh, thank God you’re back, nothing fits the hole you left,” and I think that’s true for the consumer now. We need to relight the fuse and I can tell you, having seen the designs and seen the innovation and seen the things we’re doing, everyone’s going to be excited about the quality, about the design, about the aesthetics and I think everyone’s going to be super excited.

WWD: Who designs the collections?

P.K.: In charge of product overall, including design, is a woman named Barbara Zappoli, and she is terrific. She’s been with the company a long time. She has all the history, also a great love and interest in using the finest, newest techniques. And you’ll see in our new line, we’re experimenting with a variety of new materials that really haven’t been used. I don’t want to give away the secrets yet, but there are exciting new ways to bring our history into a little bit more modern styles, in some cases. The team does terrific work. We don’t have a named lead designer. That’s not how we work, but we have a team of people that are that are terrific and again, we have this tremendous DNA to pull from.

WWD: You hold the role of chairman and Paolo Venucchi is the CEO, so what are your financial objectives?

P.K.: Obviously this will take a considerable investment. We have a three-year plan to get to break even. We have longer term goals, but they’re more general. The business at its peak, more than 10 years ago, was doing over 250 million euros of revenue and we believe the business can be bigger than it ever was as the luxury market has grown considerably in the last 20 years, so there’s great opportunity there. And again, the brand is so aspirational, even if you haven’t had it, even if you’ve never worn it, you know what it is. We can take our time. We’re not a private equity firm, we’re not a public luxury company, so we don’t have to rush.