Core Viewpoint - Aeffe's shares dropped 43.34% to 0.25 euros following the announcement of its application for a negotiated settlement of the group business crisis, indicating significant financial distress within the company [1][3]. Company Summary - Aeffe has filed for a negotiated settlement in the interest of itself and its subsidiary Pollini, while excluding other brands like Alberta Ferretti and Moschino from this initiative [2]. - The decision was made to ensure stability and address financial strains affecting Aeffe and Pollini, attributed to a deep crisis in the luxury fashion sector and negative developments from late August to September 2025 [3]. - KPMG Advisory SpA has been appointed as the financial adviser, and Orsingher Ortu Avvocati Associati will provide legal support [3]. - Aeffe's revenues fell by 27.8% to 100 million euros in the first half of the year, with net losses increasing to 28.5 million euros from 20.4 million euros a year earlier [8]. - The wholesale channel saw a decline of 29.7% to 64.4 million euros, representing 64.4% of total sales [8]. - As of June 30, Aeffe's debt was reported at 95.7 million euros, down from 135.2 million euros the previous year [8]. Industry Context - The luxury fashion sector is currently facing a deep crisis, impacting companies like Aeffe and prompting similar restructuring measures, as seen with LuisaViaRoma [4]. - Aeffe is implementing a major cost rationalization project expected to take full effect in 2026, which includes reducing fixed, direct, and labor costs due to anticipated further sales slowdowns [9]. - The company is also focusing on growth strategies and organizational efficiency improvements, with plans extending from 2026 to 2028 [10].