Luxury supplier Altofare Group is preparing to kick off debt talks with its creditors as spending on high-end goods declines.
The company, which oversees a group of Italian suppliers to the luxury world, has hired KPMG and law firm Chiomenti for advice on its debt, according to people familiar with the matter, who spoke on condition of anonymity because the details aren’t public. Altofare is owned by private equity firm White Bridge Investments.
One of Altofare’s main operating units, Lampa Srl, owed €145 million ($157 million) in loans to a pool of banks including Banco BPM SpA, Credit Agricole SA and Intesa Sanpaolo SpA as of the end of 2023, the latest available annual statements show. The debt comes due between 2028 and 2029, but there are amortisation payments the company must make every six months, according to the document.
Representatives for Banco BPM, Credit Agricole and KPMG declined to comment. Altofare, Chiomenti and Intesa didn’t immediately return a request for comment.
The market for personal luxury goods experienced its first contraction in 15 years in 2024 as economic uncertainty and rising prices dented spending, according to a recent report by Bain & Co and Fondazione Altagamma, the trade association of Italian luxury goods manufacturers. Over the years, Altofare assembled a stable of brands — including button- and accessories-maker Lampa — specialising in metal finishes, jewels, resins and shoe accessories.
The company had previously been in conversations with the banks about a covenant breach at the end of 2023, but that was resolved by modifying the terms, according to the annual statements.
Learn more:
The BoF Podcast | The Luxury Crisis, Explained
BoF’s Imran Amed and Bob Safian discuss the forces shaping the luxury slowdown and what the industry needs to do to snap out of it.
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