Aeffe initiates pre-pack to stabilize liquidity as H1 sales drop 27.5%
Bottom Line Impact
Expect near-term revenue pressure and negative margin to persist through the reset, but decisive ring-fencing and cash actions can stabilize operations, defend Moschino and Alberta Ferretti brand equity, and set up a 300-500 bps margin recovery with a potential capital raise improving market position within 6-12 months.
Key Facts
5- H1 sales fell 27.55% to €102.8m from €141.89m year over year
- EBITDA turned to a loss of €11.24m vs €0.419m profit in the prior year period
- Pre-pack applies to Aeffe and Pollini only, with Moschino and Alberta Ferretti excluded
- Independent expert requested with protective measures; KPMG appointed financial advisor and Orsingher Ortu legal counsel
- Board change in August with Roberto Lugano resigning and Marco Gobbetti appointed as director
Time Horizons
Executive Summary
Aeffe has entered Italy's pre-pack crisis procedure for Aeffe and Pollini after a 27.55% H1 sales decline and a swing to negative EBITDA, while Moschino and Alberta Ferretti remain ring-fenced. The move buys 3-6 months of protection to execute cost cuts, working-capital release, and potential perimeter actions, but heightens wholesale and supplier risk unless communication and funding are tightly managed.
Actionable Insights
Immediate Actions (Next 30-90 days)
Publicly ring-fence Moschino and Alberta Ferretti with a 12-month operating plan and consider a structured process for a 20-30% minority sale in Moschino to raise €80-100m
Rationale: Signals continuity to the market, funds restructuring without diluting brand equity control, and protects creative momentum
Role affected:CEO
Urgency level:immediate
Execute a 90-day liquidity program releasing €20-30m via 25-30% SKU cut, inventory write-downs paired with controlled off-price, and renegotiating 15-20% of leases
Rationale: Working-capital and opex relief extend runway under protective measures and support supplier confidence
Role affected:CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Prioritize on-time deliveries for FW24 and SS25 top 100 SKUs and consolidate production across 2-3 tier-1 suppliers with vendor-financed terms
Rationale: Secures sell-through on hero products, limits cancellations, and stabilizes the supply base
Role affected:COO
Urgency level:short-term
Protect Moschino and Alberta Ferretti brand spend with a minimum 70% allocation to digital and hero product storytelling while pausing non-core campaigns
Rationale: Maintains consumer demand and price integrity during restructuring, supporting DTC mix expansion by 3-5 pts
Role affected:CMO
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Supplier credit tightening leading to production delays and missed deliveries
- Wholesale order cancellations exceeding 10% for SS25 in Europe and the Americas
- Talent attrition in design and merchandising impacting Moschino's pipeline
Primary Opportunities
- Monetize Moschino licensing verticals in eyewear, fragrance, and kids to add €15-25m cash inflow over 12 months
- Pollini pivot to direct e-commerce and selective concessions improving gross margin by 250 bps
- Perimeter optimization and store rationalization lifting group EBITDA margin by 300-500 bps by FY2026