Wednesday, 9 December 2009

Valentino Group Set To Lose 1/3 Of Their Debt? – 9/12/09

We have our ear to the ground to hear whether Italian fashion house Valentino will have their debt lightened by one third later this week.

The Financial Times reported that Permira, the Marzotto family and other investors in Valentino are close to an agreement to pay €200m-€300m (AU $325m–AU $490m) to acquire €730m (AU $1.2b) of debt from Citigroup at a big discount to its face value.

We have been following the falling Valentino’s fortunes (see our July 3 article: The Valentino Fashion Group Is In A Financial Bind). So it will be interesting to see what happens. The involvement of the Marzotto family is of particular interest – we wonder if they are aiming to follow in the footsteps of the other 'big three' luxury goods groups, LVMH, PPR and Richemont?

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,