The leading Italian fashion supplier, Altofare is now in talks with the creditors, following the withdrawal by banks, given the company’s increasing financial burden and overall slump in the luxury sector.
With this sector facing challenges largely in its supply chain and procurement management, the reports by McKinsey and BoF (Business of Fashion) highlight only a conservative 2 to 4% increase in the luxury segment’s annual sales from 2025 to 2027. Amidst such tight conditions, Altofare has debt, which was issued through Lampa Srl (the company’s primary operating units) and its maturity is between 2028 and 2029. However, the company’s latest annual report did mention that it would be making semi-annual amortisation payments instead of lump sum payments to meet its debt.
Consequently in the light of these mounting financial pressures, the investment firms Illimity SGR SpA and DeA Capital SpA stepped in to help Altofare restructure its financial obligations. As per the sources, while Illimity has purchased a portion of Altofare’s loan amounting to US $ 171 million providing some relief to the company, the DeA Capital has entered negotiations to acquire a larger stake in the same loan package.
Additionally, as Bloomberg previously reported on the company’s discussions with the creditors over reorganising debt obligations, Altofare with private equity firm White Bridge Investments as its owners, joins the growing list of luxury suppliers that are facing turbulence in keeping up with their finances. For instance, another fashion supplier MinervaHub SpA is also currently negotiating its debt terms with creditors.
