Italy’s HModa to explore strategic options, owner says

​Italy’s HModa, which groups Italian luxury clothing and leather goods manufacturers, is exploring strategic options for the company as it anticipates a sector rebound in 2025, its owner told Reuters.

Claudio Rovere, who is the majority shareholder of HIND, which in turns controls HModa, said that the company is in talks with JP Morgan and Intesa Sanpaolo among other banks to explore a possible listing, bringing in a private equity firm as a minority investor or a new financing package.

“We believe that in 2025 our sector will accelerate significantly and HModa can grow organically and through acquisitions,” Rovere said in a phone interview.

Italy is home to thousands of small manufacturers that cover 50-55% of the global production of luxury clothing and leather goods, consultancy Bain calculated.

However, many Italian luxury suppliers, such as leather companies in Tuscany, are dealing with declining orders and have had to lay off staff.

In the last decade, big brands have bought some of their suppliers to secure access to craftsmanship and timely deliveries and better address sustainability concerns. Private equity firms have also scented value and created hubs through a “buy and build” strategy.

Rovere, which created HModa in 2017, added that players in the luxury supply chain are facing tougher competition and requests for higher standards.

“With new European standards, brand compliance demands… we have to be ready to invest more than before”, he added.

HModa reported revenues of 310 million euros ($334 million)in 2023, but it didn’t disclose the profit.
Last year private equity firm Permira acquired the majority of Gruppo Florence, in a deal which valued the hub of Italian luxury clothing and leather goods manufacturers at more than 1 billion euros.