Prestigious Italian fashion house Valentino, Kering and Mayhoola have reached an agreement to inject €100 million (approximately $117 million). This strategic financial intervention comes after Valentino encountered challenges with its loan covenants earlier this year, marking a pivotal moment for the brand.

Valentino is under the ownership of MFI Luxury Srl, a holding company where Mayhoola holds a commanding 70% stake, with Kering possessing the remaining 30%. The decision to infuse capital reflects the shareholders’ commitment to ensuring the long-term sustainability and growth of the iconic fashion label, which has been a beacon of luxury and Italian craftsmanship.

According to minutes from a recent shareholder meeting held on October 16, the capital injection is scheduled to occur in two tranches by December 10. This timeline underscores the urgency of the situation while also demonstrating a proactive approach to resolving Valentino’s financial hurdles.

The collaboration between Kering, a global leader in luxury goods, and Mayhoola, an investment firm known for its strategic acquisitions in the fashion industry, signals a unified front committed to bolstering Valentino’s market position amid an ever-evolving retail landscape.