11 months ago
Valentino in Talks with Banks Following Debt Breach
Valentino, the fashion company, is having money troubles.
They borrowed a lot of money, and now they can't pay it back as easily because people aren't buying as many fancy clothes.
Because of this they had to talk to the banks.
The company's sales went down, and they didn't make as much profit.
Part of this is because people are worried about the economy.
The company has also made some changes to who runs the business.
They borrowed money last year and agreed to stay below a certain level of debt compared to how much money they make.
They didn't make enough money and are now trying to work things out with the banks.
Valentino is in discussions with creditors after breaching its debt terms.
The company is owned by Mayhoola for Investments and Kering SA.
Valentino's debt-to-earnings ratio surpassed its credit agreement threshold.
A global luxury downturn has hurt Valentino's performance.
Kering SA has an option to buy the rest of Valentino by 2029.
- Who
- Valentino SpA
- What
- Is in talks with creditors after a debt breach due to a slowdown in luxury good demand.
- Where
- Italy
- When
- Breached debt terms in December 2024.
- Why
- Due to a global luxury downturn caused by economic uncertainty and rising tariffs.
Key facts
- Company
- Valentino SpA
- Owner
- Mayhoola for Investments & Kering SA
- Debt Amount
- €530 million ($619 million) financing
- Debt Breach
- Net debt-to-earnings ratio exceeded the threshold
- Revenue 2024
- €1.31 billion, down 2.8%
- Ebitda 2024
- €248 million, down 21%
- Net Debt (Dec 31)
- €1.08 billion
- CEO
- Riccardo Bellini


