Isabel Marant - comment

In summary, the proposal results in a 2.5-year maturity extension, a €20 million equity contribution and enhanced covenant protections. There is no change to the coupon and no reduction in principal.

Isabel Marant has proposed an amend-and-extend transaction, which, given the limited creditor control over the brand, represents the most pragmatic outcome for bondholders. The proposal extends the maturity by 30 months to September 2030. The coupon remains unchanged, while bondholders are offered total consent fees of 1.75% for consents delivered by 9 March. Approval requires a 90% consent threshold. The transaction is supported by a €20 million equity injection from shareholders, conditional upon approval. Bondholders benefit from meaningful covenant tightening, including caps on investments and unrestricted subsidiaries, a 90% approval threshold for any changes to ranking or security, and tighter restrictions on asset sales, securitisations and sale-and-leaseback transactions.

The Company will host a bondholder call on Wednesday at 9:00 a.m. UK time. Separately, it released preliminary Q4 2025 trading figures showing FY25 revenue growth of 6%, with Q4 driven by strong retail performance across both e-commerce and physical stores. The wholesale segment remains under pressure, though Q4 showed a modest improvement with 1% growth. Overall, the results point to stabilisation and gradual recovery, albeit with the wholesale rebound still lagging.