Valentino, one of Italy’s most well-known fashion houses, is going through a tough time. The company has taken on loans, but now it has broken the rules of its debt agreement. In simple words, it has borrowed money with certain conditions attached, and it has failed to keep those promises. Because of this, Valentino is now sitting with its lenders and trying to negotiate some relief.
The brand is owned by Qatar’s Mayhoola for Investments along with French luxury giant Kering. Together, they are looking for ways to get Valentino out of this situation. The problem mainly comes from the company’s debt-to-earnings ratio. This ratio shows how much debt the brand has compared to how much profit it makes. Valentino’s ratio has crossed the allowed limit in the loan deal, which means the company is officially in breach of the agreement.
Sources say this issue first came up in December. Back then the company was already struggling, but in 2025 things became much worse. During the first half of the year, earnings fell a lot more than expected, leaving the company in a fragile position.
Valentino is most famous for its rich crimson shade called Rosso Valentino, a color that has become its signature in the fashion world. But even such a strong legacy has not been able to protect it from bigger market problems. The luxury goods industry is slowing down worldwide. Rising tariffs, higher costs, and uncertainty in the global economy are forcing many customers to cut back on buying expensive fashion items. People are choosing to save money instead of splurging on high-end clothes and accessories.
This shift has directly hurt Valentino’s sales and left the brand struggling to meet its financial promises. For now, the fashion house is hoping creditors will allow it some breathing room. How these talks go will decide whether Valentino can stabilize its finances or sink deeper into trouble.
