Unable to meet its financial commitments to its creditors by the end of 2024, the Italian luxury fashion house, jointly owned by Mayhoola and Kering, is seeking to ease its constraints. Valentino has not escaped the difficulties facing the luxury sector, and its performance continues to deteriorate…
According to the financial agency Bloomberg, which obtained its information from anonymous sources close to the matter, Valentino SpA is in discussions with its creditors to obtain debt relief. This comes after the company’s failure to meet certain financial covenants at the end of 2024 amid a sharp slowdown in its performance.
Last December, the luxury fashion house’s debt-to-earnings ratio reportedly exceeded for the first time the threshold set by a credit agreement concluded in July 2024 by a banking group and subject to half-yearly reviews.
Banking pool
Valentino has contracted the majority of its debt, financing of €530 million ($619 million), from a handful of banks, including Intesa Sanpaolo SpA, Banca Monte dei Paschi di Siena SpA, Banco BPM SpA, and BNP Paribas SA. Net debt, including lease liabilities, exceeded €1.08 billion at the end of December.
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Read also > Kering postpones acquisition of Valentino
Featured photo: © Valentino
