Valentino Fashion Group’s private equity investor Permira is in talks to buy back some of the debt accrued when it purchased the Italian fashion house two years ago.
Valentino Fashion Group, which owns the Valentino and Hugo Boss brands and holds the licence for M Missoni and Marlboro Classics, currently has a debt of €2.2bn (£2bn).
Along with other Valentino shareholders, Permira will invest up to €300m (£271.2m) to reduce Valentino’s debt by about a third, sources told Reuters.
It is understood that the deal to buy back the debt at a discount to face value will close in the early part of this week and will see Citigroup withdraw from Valentino’s lender pool, leaving UniCredit and Mediobanca.
According to reports, a spokesman for Permira said a deal was imminent.