Mayhoola’s adventure in high fashion isn’t proceeding in the best of ways, along with the “less than brilliant” decision taken with the deal for Valentino’s move to Kering we have written about. But even to keep Balmain on the runway, the Qatar fund is spending more than it earns: according to Glitz.Paris, Mayhoola injected a total of 63 million into it in 2024 and 40 in the previous year.
In order to keep Balmain on track
With the economy being what it is, Balmain’s top management cannot be blamed too much for the brand’s financial performance. According to Glitz.Paris, which read the Luxembourg holding company’s financial statements, Balmain ended 2024 down 25% year-on-year: its turnover dropped from 266 million to 200 million. The struggling the fiscal year suffered was particularly affected by China (-32%), as it has to rework its outlook in the States (which accounts for 41% of its sales) in light of duties on European imports.
The consequence of languishing sales is a string of liabilities: between 2022 and 2024 Balmain showed -1.8, -2.9, and -2.7 million euro. That is why last year Mayhoola “contributed 14 million euro, gave the company an advance on account for the same amount, and lent it 35 million euro, for a total of 63 million euro”. Already in the previous year, the fund “injected 40 million euro and entered into other major financing agreements for Balmain”.
Photo from social media
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