Textile Group

Textile Group is an Italian group specializing in the design, production, and distribution of “Made in Italy” menswear collections. Born from a family tradition in Puglia dating back to the 1940s, the group has evolved from a tailoring workshop into a structured enterprise, operating through both in-house brands and licensed brands, with a national and international distribution network.

The company’s structure integrates style, product development, patternmaking, prototyping, production, quality control, logistics, sales, communications, and marketing. The brand portfolio comprises four brands (Beta, Alfa, Gamma, and Delta), each with distinct positioning: casual, premium, formal wear, sustainability, and Made in Puglia.

The starting point of the Plan highlighted a company with approximately 5.5 million euros in revenue, 43,000 garments sold, 350 customers, an EBITDA of around 10%, and a residual debt as of December 2024 of approximately 5 million euros.

The Finance Atena® platform and the Digital Twin Business Model® were used to build a predictive economic and financial model of the company.

The model analyzed sales, variable costs, fixed costs, personnel, inventory, investments, taxes, working capital, debt, profit margins, and cash flows. The analysis was conducted by individual areas and business units, in order to understand not only the company’s overall situation but also the impact of operational decisions on individual brands and channels.

The analysis enabled a comparison of several scenarios: the current situation, debt restructuring, and a Strategic Relaunch Scenario. The latter envisions reaching the new financial structure by the fifth year of the Plan and shows significant growth: revenue increases from approximately 5.5 million euros to approximately 22.9 million euros, while EBITDA grows from approximately 573,000 euros to over 8.6 million euros, with an operating margin reaching 37.56%.

The added value of Finance Atena® was to transform a complex business entity into an industrial project that is transparent from an investor’s perspective.

The identified turnaround initiatives address multiple dimensions. Debt restructuring improves creditworthiness, reduces the perception of risk, and makes the financial structure more sustainable. Optimizing working capital - by reducing DSO and DIO - improves the balance between collections, payments, and financing needs. Expanding premium exports for brands such as Alfa and Gamma drives revenue and margin growth.

In addition to these levers, the company is enhancing Delta’s value as an ESG asset, strengthening communication of intangible assets, introducing cost accounting by brand and channel, and placing greater emphasis on supply chain sustainability. These actions directly impact the measurability of margins, the quality of market positioning, transparency toward investors, and the company’s ability to credibly communicate its value.

A comparison of the scenarios clearly illustrates the shift in momentum generated by the Strategic Relaunch. In the Base Scenario, Gruppo Tessile starts with revenue of approximately 5.5 million euros and EBITDA of approximately 573,000 euros, equal to 10.37% of revenue. At full capacity, in the Relaunch Scenario, revenue reaches approximately 22.9 million euros and EBITDA exceeds 8.6 million euros, with an operating margin of 37.56%. In absolute terms, EBITDA grows by over 8 million euros compared to the Base Scenario, increasing approximately 15-fold.

Compared to the Debt Restructuring-Only Scenario - which the Plan characterizes as a partial rescue measure not yet sufficient to make the company saleable - the Strategic Revitalization, on the other hand, introduces a genuine improvement in operating performance, transforming Textile Group into a project deemed “saleable” and more in line with the expectations of an industrial or financial investor.

The valuation was based on two perspectives: that of the company and that of the new investor. For Textile Group and its current shareholders, the Plan indicates Invested Equity of €0, a residual stake of 40%, and a Terminal Value at the Exit Strategy of €25,899,464. For the new investor, the plan calls for Invested Equity of €10,000,000, a 60% stake, and a Terminal Value at the Exit Strategy of €38,849,196.

This allows the project to be presented not only as a corporate turnaround plan but also as a transaction that makes sense from an investment perspective: capital injected, stake acquired, projected value at exit, and the sustainability of the business strategy.