Dainese SpA, the Italian premium sportswear manufacturer backed by The Carlyle Group, has initiated discussions with creditors over a potential debt restructuring after reporting a significant increase in annual losses, according to a report by Bloomberg.
The motorcycling and ski apparel brand posted a €120m loss for 2024 – nearly triple the deficit recorded the previous year – according to its recently published financial statements. The widening losses have prompted the company to seek amendments to existing debt agreements.
Dainese’s current capital structure includes €278m in private bonds maturing in 2027 and a €52.5m revolving credit facility, the report showed. The company attributed its poor performance to soft consumer demand and an €86m goodwill impairment.
Despite the headwinds, Dainese continues to receive support from Carlyle, which injected €15m in fresh equity capital in December. This infusion ensured compliance with covenant tests at year-end, according to the filings.
The development follows a broader retrenchment by Carlyle from the European consumer sector, as the firm reassesses its exposure amid shifting market dynamics. The US private equity giant, which acquired Dainese in 2022 through a leveraged transaction involving private credit funds, has faced several challenges in the space.
In a notable setback, Carlyle relinquished control of UK-based End Clothing to Apollo Global Management in late 2023 following financial strain. Dainese, meanwhile, has struggled with post-Covid inventory overhang, higher borrowing costs, and softer demand from key markets including China.
