Kering and Mayhoola inject €100 million into struggling Valentino
French luxury group Kering and Qatar-backed investment fund Mayhoola will inject €100 million ($117 million) into Valentino to stabilize the Italian fashion house’s finances after it breached loan terms earlier this year, according to a corporate document reviewed by Reuters.
Valentino is owned by MFI Luxury Srl, with Mayhoola holding a 70% stake and Kering 30%. The capital injection, to be completed by December 10, comes after a group of banks requested investor support following Valentino’s breach of a €530 million loan agreement signed in 2024, News.Az reports, citing Reuters.
Kering acquired its minority stake in Valentino for €1.7 billion in 2023, with plans to fully take over the brand from Mayhoola in the future.
The luxury label has been battling declining profitability, rising debt, and a slump in global luxury demand. Its 2024 revenue dropped 2% to €1.3 billion, while core earnings (EBITDA) fell 22% to €246 million. Total debt stood at around €1 billion.
Under new CEO Luca de Meo, Kering postponed its full acquisition of Valentino until 2028 under revised terms with Mayhoola.
Both Kering and Mayhoola declined to comment on the latest capital move.
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