HModa, an association of Italian producers of high-end apparel and leather goods, is now examining potential strategic paths for the organisation in light of the industry’s projected recovery by 2025.
The company is in discussions with JP Morgan and Intesa Sanpaolo, among other banks, to examine a potential IPO, bringing in a private equity firm as a minority partner, or a fresh financing package, according to Claudio Rovere, the biggest stakeholder of HIND, which in turn controls HModa.
“We believe that in 2025 our sector will accelerate significantly and HModa can grow organically and through acquisitions,” Rovere said in an interview.
According to consulting firm Bain, thousands of small businesses in Italy account for 50–55 percent of the world’s output of high-end apparel and leather goods.
Nonetheless, a lot of Italian providers of luxury goods, including Tuscany’s leather businesses, are having to fire employees due to dwindling orders.
Over the past ten years, major brands have acquired a portion of their suppliers in order to better handle sustainability concerns, get access to skilled craftsmen and timely delivery. Using a “buy and build” approach, private equity firms have also identified value and established hubs.
Rovere, which created HModa in 2017, added that players in the luxury supply chain are facing tougher competition and requests for higher standards.
HModa reported revenues of € 310 million (US $ 334 million)in 2023, but it didn’t disclose the profit.
Last year private equity firm Permira acquired the majority of Gruppo Florence, in a deal which valued the hub of Italian luxury clothing and leather goods manufacturers at more than € 1 billion.
