Valentino in Talks With Banks as Luxury Drop Prompts Debt Breach

Valentino SpA is in talks with creditors after a slowdown in demand for luxury goods battered its results, leading the fashion house to breach the terms of its debt, according to people familiar with the matter.

The Italian company, owned by Qatar’s Mayhoola for Investments and Kering SA, is seeking relief on its covenants after its debt-to-earnings ratio surpassed the threshold set in its credit agreement, said the people, who spoke on the condition of anonymity because the deliberations are private.

Valentino has been hurt by a global luxury downturn, fueled by economic uncertainty and rising tariffs, that has ...