Watches
Breitling AG (House of Brands) Under Pressure Due to Partners Group’s 6 Bn Euro Debt
By Eva Morletto01 septembre 2026
This is a critical moment for Breitling AG (which became House of Brands in April 2026): the Swiss watch brand’s largest shareholder, the Partners Group fund, must address a major refinancing challenge over the next two years.
Three companies in its portfolio—Breitling, Emeria, and Ammega—collectively have nearly 6 billion euros in debt to refinance, much of which matures in two years. The investment manager thus finds itself in the position of having to support all three heavily indebted companies simultaneously, in an economic climate where borrowing costs remain high and investors have become more cautious.
Newsletters
Cet article vous plaît ?
Inscrivez-vous à nos newsletters pour recevoir les dernières publications et analyses selon nos 4 thématiques:
A 2028 Deadline
The watchmaker (which now includes the Breitling, Gallet, and Universal Genève brands) must notably refinance part of its debt in October 2028. In this context, there is an additional challenge: today, these debts are trading below their face value on financial markets, which means investors view them as riskier than when they were originally issued.
In July 2025, Standard & Poor’s downgraded Breitling’s credit rating from B to B-, citing continued weak demand, primarily due to the slowdown in the luxury market, a more cautious customer base, and declining spending on international tourism.
The Swiss company also saw its sales decline by about 3% in 2025, and this year, management decided to cut more than fifty jobs.
The Emeria Real Estate Group in Financial Difficulty
As mentioned above, the problem for Partners Group is that Breitling is not the only case it has to manage. The Emeria real estate group alone has approximately 3.5 billion euros in debt and represents the most complicated situation in the portfolio.
The manager will therefore have to decide how to allocate its resources among several companies that will need to refinance their debt almost simultaneously. It is also important to consider that Partners Group’s recent half-year results further weigh on the situation: profit fell 13% to 502 million Swiss francs, while revenue declined 7% to 1.12 billion francs.
For Breitling, the challenge is therefore twofold. On the one hand, the Swiss watchmaker must continue to invest in its growth trajectory through its network of boutiques, new products, and the strengthening of its brand identity. On the other hand, its shareholder must maintain sufficient financial flexibility to renegotiate its debt on favorable terms. Founded in 1884 in Saint-Imier, Breitling remains one of the major Swiss watchmakers independent of the large luxury groups.
Key Points:
- Breitling faces a major refinancing deadline in 2028, as part of its debt will need to be refinanced while its bonds are currently trading below face value, reflecting increased investor risk perception.
- Partners Group is facing nearly €6 billion in debt across three portfolio companies — Breitling, Emeria and Ammega — with a significant portion coming due over the next two years.
- Breitling remains under commercial pressure: sales fell by around 3% in 2025, more than 50 positions were cut in 2026, and Standard & Poor’s downgraded the company’s credit rating to B- in 2025.
Partager l'article
Continuez votre lecture
Watches
Watches and Wonders Geneva 2027 Announces the Arrival of Four Brands, Including Damiani and Breitling
Watches and Wonders Geneva has just unveiled the dates for its next edition, which will take place from April 5 to 11, 2027. This announcement comes with some major news: the arrival of Breitling, Damiani, Gallet, and Universal Genève. The fair further solidifies its status as an unmissable event for the industry.
Watches
Breitling Restructures After Years of Expansion
Players in the mid-range segment are suffering from the global economic slowdown. Breitling, famous for its Navitimer watch designed for pilots, is now facing the limits of its growth strategy.
By Eva Morletto
Newsletters
Cet article vous plaît ?
Inscrivez-vous à nos newsletters pour recevoir les dernières publications et analyses selon nos 4 thématiques: