Report: Kering and Mayhoola to Inject €100 Million Into Valentino

Kering and investment fund Mayhoola have agreed to inject €100 million ($117 million) into Valentino to shore up the Italian fashion house’s finances after it breached loan covenants earlier this year, according to a corporate document and two sources familiar with the matter.

Valentino is controlled by holding company MFI Luxury Srl, in which Qatar-backed Mayhoola holds a 70 percent stake and French luxury conglomerate Kering owns the remaining 30 percent.

Kering acquired the stake in Valentino for €1.7 billion in 2023, with a commitment to fully take over the brand from Mayhoola.

MFI Luxury Srl agreed to inject the capital by December 10 in two tranches, according to minutes from a shareholder meeting held on October 16 reviewed by Reuters.

A pool of banks that last year extended a 530 million euro loan to Valentino requested additional cash from its investors after the fashion house failed to comply with certain terms of the financing agreement, two sources familiar with the matter said.

Kering declined to comment. Mayhoola did not immediately respond to a request for comment.

Valentino’s Financial Struggle

Valentino, which has been grappling with declining profitability and rising debt while global luxury goods demand slowed, signed the loan agreement in 2024 with lenders Intesa Sanpaolo, Banca Nazionale del Lavoro-BNP, Monte dei Paschi di Siena, Banco BPM and Italy’s state-backed investment fund Cassa Depositi e Prestiti (CDP).

The financing, which matures in July 2029, originally included a financial covenant based on a leverage ratio, to be reviewed every six months.

The two shareholders have been discussing a further equity commitment of €150 million, Italian daily Il Messaggero reported in October, without giving further details.

In September, under new CEO Luca de Meo, Kering said it would delay the full acquisition of Valentino until at least 2028, under revised terms agreed with Mayhoola.

Valentino’s revenue fell 2 percent at constant exchange rates to €1.3 billion in 2024 from a year earlier. Its core earnings (EBITDA) dropped 22 percent to €246 million, according to company filings. Debt, calculated including lease liabilities, stood at around €1 billion at year-end.

By Elisa Anzolin, Andrea Mandala