Aeffe Shares Plunge as Group Seeks Financial Restructuring
Shares of Aeffe, the Italian fashion group, experienced a significant downturn on Friday, plummeting 43.34 percent to close at 0.25 euros on the Italian Stock Exchange. This followed the company's decision to pursue a negotiated settlement of its business crisis.
Negotiated Settlement and Brand Strategy
Aeffe has initiated the process of filing for a negotiated settlement (CNS), also requesting the appointment of an independent expert and protective measures. The company clarified that this application specifically pertains to Aeffe and its subsidiary Pollini, while brands such as Alberta Ferretti and Moschino are excluded from this initiative.
The company stated that this step was "carefully evaluated as the most appropriate solution to ensure stability during the period necessary to implement actions aimed at overcoming the financial strains currently affecting the company and Pollini,". They attribute this to "the deep crisis impacting the entire luxury fashion sector and the recent negative development between late August and September 2025."
Aeffe aims to "preserve the integrity of the corporate assets of Aeffe and Pollini, safeguard business continuity and protect the interests of all stakeholders."
Advisors and Similar Cases
KPMG Advisory SpA has been appointed as financial advisor, while Orsingher Ortu Avvocati Associati will provide legal support to Aeffe and Pollini. This situation mirrors a similar move by LuisaViaRoma in August, which also resorted to the "Composizione Negoziata della Crisi," a voluntary restructuring process.
Pollini's History and Contribution
Pollini, a renowned footwear and handbag brand, celebrated its 70th anniversary in 2023. The brand gained prominence through its Cavaliere boot, which was featured in Bernardo Bertolucci’s film "Last Tango in Paris." Pollini also produces accessories for Aeffe, contributing to the success of Moschino’s biker bag and heart-shaped clutches.
Founded by the Pollini family, the firm has a history of producing for third parties, including Fendi, Jil Sander, and Dsquared2. Notably, its artisans created the skeleton heel and ice skate heel ankle boots for Dsquared2. Pollini's distribution primarily relies on wholesale, a channel currently facing significant challenges.
Financial Performance and Restructuring Plans
Aeffe group revenues experienced a decline of 27.8 percent, reaching 100 million euros in the first six months of the year. Net losses amounted to 28.5 million euros, compared to a net loss of 20.4 million euros in the previous year. The group's wholesale channel also saw a decrease of 29.7 percent to 64.4 million euros, accounting for 64.4 percent of sales.
As of June 30, debt stood at 95.7 million euros, net of the IFRS 16 effect, compared with 135.2 million euros at the end of June last year. In August, Aeffe announced a "major cost rationalization project" to take effect in 2026, aiming to reduce fixed, direct, and labor costs.
Executive chairman Massimo Ferretti mentioned the appointment of former Ferragamo CEO Marco Gobbetti to the board to enhance growth strategies and strengthen the group through potential strategic partnerships. The measures also include cost-cutting and improved organizational efficiency over a 2026-2028 period.
