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Dolce & Gabbana Weighs Property Sales to Boost Liquidity
Dolce & Gabbana is seeking to raise cash through extraordinary corporate transactions, including potential property sales, after banks granted a debt waiver as luxury demand remains weak.
Dolce & Gabbana Holding Srl has secured a waiver from its lenders until March 31, 2028, allowing the Italian fashion house to complete a series of extraordinary corporate transactions by the end of June 2027 to provide liquidity for the group, according to its latest publicly available accounts.
The company, which controls the fashion unit Dolce & Gabbana Srl and the beauty division Dolce & Gabbana Beauty Srl, also agreed to keep its debts below a threshold equivalent to three times profits starting from March 31, 2028.
The transactions are in advanced negotiations, Dolce & Gabbana Srl said in a separate earnings filing. A representative for Dolce & Gabbana declined to comment.
In the fiscal year ended March 31, the holding company's debt rose to around €465 million ($542 million) from about €380 million in the previous period. Revenue slightly contracted to €1.86 billion from €1.9 billion, while earnings before interest, taxes, depreciation, and amortisation fell to roughly €10 million from about €30 million.
In April, Dolce & Gabbana Srl received €150 million from EssilorLuxottica SA after extending an existing licensing contract until 2050. The company has also revamped its management in recent months as it negotiates with lenders.