Aeffe's deep restructuring signals acute distress at Moschino group
Bottom Line Impact
Aeffe's severe restructuring will likely depress its revenue and margins further in the near term and weaken its market position and brand equity, but simultaneously opens a window for stronger players to capture share, talent, and potentially valuable Italian brands at distressed valuations.
Key Facts
5- Aeffe has initiated a mobility procedure for 221 redundancies out of 540 employees (~41% of total headcount), with dismissals timed around Christmas and concentrated in Romagna (81 roles) and Milan (141 roles).
- Group turnover fell to €251m in 2024, down 21.2% from €319m in the previous year, with a further 24% revenue drop reported for the first months of 2025, indicating accelerating top-line contraction.
- The company, including Pollini, has requested access to Italy's negotiated crisis composition procedure and appointed independent expert Riccardo Ranalli, signaling formal recognition of severe financial and industrial distress.
- Around 500 employees have been under special redundancy schemes that are set to expire on January 12, removing a key social safety valve just as structural job cuts are announced.
- Two decisive meetings at Italy's Mimit (Ministry of Business and Made in Italy) and the Ministry of Labour are scheduled for January 16 and 21, when Aeffe must present its outlook and countermeasures, effectively defining the near-term survival roadmap.
Time Horizons
Executive Summary
Aeffe is entering an acute restructuring phase, cutting 41% of its workforce amid a 21–24% revenue collapse and a formal negotiated crisis composition, putting core brands Moschino, Alberta Ferretti, and Pollini at risk. The absence of a visible industrial plan, combined with labour tensions and state involvement, creates both a distressed-asset risk and a potential acquisition or licensing opportunity in the accessible and contemporary luxury segment.
Actionable Insights
Immediate Actions (Next 30-90 days)
Immediately instruct commercial teams to map overlapping wholesale and franchise accounts with Aeffe brands and proactively offer expanded assortments and improved in-season support to retailers seeking to de-risk their brand mix.
Rationale: Retailers exposed to Moschino, Alberta Ferretti, and Pollini will be looking to fill volume and margin gaps; moving quickly can secure incremental doors and floor space before competitors lock in allocations for Fall-Winter 2025 and Spring-Summer 2026.
Role affected:CEO
Urgency level:immediate
Short-term Actions (6-12 months)
Accelerate targeted campaigns and collaborations aimed at Moschino's and Pollini's core consumer segments, emphasizing stability, product availability, and long-term brand investment, especially in Italy and key European cities.
Rationale: Consumer confusion or disappointment due to reduced Aeffe product availability creates a window to shift loyalty; clear, reassuring messaging and local activations can convert dissatisfied Aeffe customers into repeat buyers of competitors within 6–12 months.
Role affected:CMO
Urgency level:short-term
Monitor and selectively recruit high-performing Aeffe talent in design, merchandising, and wholesale sales, offering fast-track integration plans to capture know-how and relationships without importing structural weaknesses.
Rationale: Large-scale redundancies among 221 employees will release experienced luxury professionals into the market; moving early and selectively can strengthen internal capabilities and networks, especially in Milan, at a relatively low cost.
Role affected:CHRO
Urgency level:short-term
Strategic Actions
Set up a targeted screening of Aeffe's brands and assets as potential distressed M&A or licensing targets, including scenario modeling for acquiring IP only, entering long-term licensing, or selectively absorbing key talent and distribution contracts.
Rationale: With a 21–24% revenue decline and formal crisis procedures in place, brand IP and licenses may become available at compressed valuations within 6–18 months; being transaction-ready with clear valuation guardrails will enable faster, disciplined moves if assets come to market.
Role affected:CFO
Urgency level:strategic
Risks & Opportunities
Primary Risks
- Rapid erosion of Moschino's and Pollini's brand equity could destabilize the accessible luxury segment, leading to margin-diluting discounting and promotional intensity as stakeholders try to clear inventory.
- Supply chain and credit shock among Italian manufacturers and wholesalers exposed to Aeffe may tighten terms and capacity for other smaller brands, raising operating risk in the Italian production ecosystem.
- If a rival strategically acquires or licenses Moschino or other Aeffe brands, competitive intensity in the segment could significantly increase once the brand is recapitalized and repositioned.
Primary Opportunities
- Gain incremental wholesale and retail space in European multi-brand boutiques and department stores as buyers rebalance away from Aeffe's unstable supply and uncertain brand outlook.
- Acquire or license selected Aeffe brands or product categories at distressed valuations, using stronger capital and operational capabilities to reposition them and unlock mid-term growth.
- Recruit experienced talent and deepen relationships with Italian suppliers, consolidating bargaining power and reinforcing a more resilient production base while Aeffe downsizes.