MILAN – Aeffe shares plunged 43.34 percent to close at 0.25 euros on the Italian Stock Exchange on Friday.

This followed Aeffe’s decision to proceed with filing an application for access to the negotiated settlement of the group business crisis (CNS), along with requesting the appointment of an independent expert and the application of protective measures.

In a statement issued by Aeffe, the Italian group specified that “the application is filed in the interest and its subsidiary Pollini,” and that the other brands, Alberta Ferretti and Moschino, are excluded from the initiative.

The statement underscored that the move has been “carefully evaluated as the most appropriate solution to ensure stability during the period necessary to implement actions aimed at overcoming the financial strains currently affecting the company and Pollini,” attributed to “the deep crisis impacting the entire luxury fashion sector and the recent negative development between late August and September 2025.”

Aeffe is aiming to “preserve the integrity of the corporate assets of Aeffe and Pollini, safeguard business continuity and protect the interests of all stakeholders.”

KPMG Advisory SpA has been appointed as financial adviser, and law firm Orsingher Ortu Avvocati Associati will support Aeffe and Pollini on legal matters.

As reported, similarly, LuisaViaRoma in August resorted to this same measure, called “Composizione Negoziata della Crisi,” a voluntary, extrajudicial negotiated restructuring process, and the e-tailer  was assigned a commissioner tasked with conducting negotiations with creditors, seeking to avoid a court-mediated “composition with creditors” measure.

Pollini is a storied footwear and handbags brand that marked its 70th anniversary in 2023, when it re-edited its signature Cavaliere boot. The style’s visibility was boosted by Bernardo Bertolucci’s controversial 1972 film “Last Tango in Paris” with Marlon Brando and Maria Schneider as the late actress wore the brand’s boots throughout the movie. Pollini is also a producer of accessories for Aeffe, contributing to the success of Moschino’s biker bag and heart-shaped clutches, to name a few.

Founded by the Pollini family, the firm over the years has produced for third parties including the likes of Fendi, Jil Sander and Dsquared2, among others. For the latter brand, its artisans created the skeleton heel or the ankle boots with the ice skate heel years ago.

Pollini no longer produces under license for brands outside the Aeffe Group, and over the years it has ventured in different directions, having been designed by the likes of Nicholas Kirkwood and Rifat Ozbek, and expanded with ready-to-wear collections of its own. Largely distributed through wholesale, it is understood that this channel’s ongoing challenges have weighed on the performance of the brand.

Aeffe group revenues fell 27.8 percent to 100 million euros in the six months ended June 30 and net losses amounted to 28.5 million euros, compared with a net loss of 20.4 million euros a year earlier.

The group’s wholesale channel was down 29.7 percent to  64.4 million euros, accounting for 64.4 percent of sales.

As of June 30, debt stood at 95.7 million euros, net of the IFRS 16 effect compared with 135.2 million euros at the end of June last year.

In August, Aeffe said it was launching “a major cost rationalization project that will take full effect in 2026, including the reduction of fixed costs, direct costs and labor costs,” as it expected a further slowdown in sales.

Executive chairman Massimo Ferretti said at the time that former Ferragamo chief executive officer Marco Gobbetti was named to the board to help develop growth strategies and strengthen the group, “including, where opportunities arise, through strategic partnerships.” He also mapped out measures to cut costs and to improve organizational efficiency “with a focus on the provision of services,” beginning in the first half and throughout a 2026 to 2028 plan.