Milan Fashion Week has just turned its lights on some of the most acclaimed fashion brands in the world, but behind the glamorous collections shining on the catwalks the industry is experiencing a dramatic slump.

Shaken by economic uncertainty and market downturns, the glow that used to surround the sector – attracting enchanted customers and eager private equity investors – has been fading away.

The personal luxury goods market dipped to €363bn in 2024, a 2% decline compared to 2023 at current exchange rates, according to Bain & Co. Fashion retail sales decreased in Europe in 2024 and are expected to remain flat in 2025, as highlighted by a McKinsey report.

A flurry of insolvencies has plagued the industry in the last year, striking even some of the most established fashion companies across Europe.