PARIS: The Qatar-backed investment fund Mayhoola has denied reports suggesting it was in discussions with Kering, the owner of Gucci, about selling their jointly held fashion label Valentino. Mayhoola CEO Rachid Mohamed Rachid told Reuters, “This news is untrue,“ dismissing claims made in an Italian newspaper.
Kering’s shares initially rose by 2.5% in early Paris trading following the Corriere della Sera report but later trimmed gains after Mayhoola’s denial. A Kering spokesperson declined to comment on the matter.
In 2023, Kering acquired a 30% stake in Valentino for $1.7 billion, with an agreement to purchase the remaining 70% by 2028. However, the deal, struck at peak luxury market valuations, has since become a financial burden for Kering, which is grappling with significant debt and investor pressure to streamline operations.
Kering’s latest annual report estimated that fully acquiring Valentino could cost up to four billion euros, with potential early execution in 2026 if Mayhoola exercises put options. Meanwhile, Valentino’s future has been under scrutiny after its handbag unit, Valentino Bags Lab Srl, was placed under court administration due to labor concerns in its supply chain.
Adding to the uncertainty, Valentino CEO Jacopo Venturini recently took sick leave, fueling further speculation. The brand, now under the creative direction of Alessandro Michele, reported a 2% revenue decline last year, totaling 1.31 billion euros. - Reuters
