Czech billionaire Zdeněk Bakala’s high-end retail business is struggling on Pařížská street in Prague. His company, LBM, has reduced its portfolio of brands from 28 to just 16. Bakala recently also decided to resell three brands — La Perla, Boucheron and Vertu – to Vladan Hájek, who sold them to Bakala five years ago. LBM has since reported CZK 700m in losses and shelved its European expansion plans. LBM director Zuzana Řezníčková told idnes.cz that in line with its new strategy the company now plans to focus on luxury fashion and watches and will build multibrand stores, rather than monobrands. It intends to offer products from Saint Laurent, Givenchy, Balenciaga and Vivienne Westwood. LBM’s business was affected by the slowdown of the luxury retail market, driven by a weak ruble and a drop in Russian and Chinese tourist numbers.
