MILAN — In the M&A scenario, and especially in this economy amid global challenges, things can change quickly.
Case in point: Rothschild has been given a mandate to seek an investor in the Etro company, a source confirmed to WWD on Friday. The mandate comes even though less than two months ago Etro’s chief executive officer Fabrizio Cardinali in an interview denied that L Catteron was eyeing an exit from the brand. The private equity giant acquired a majority stake in Etro in July 2021 and Cardinali dismissed market speculation it might be aiming to sell, fueled by the approach of its four-year investment term.
More from WWD
-
LVMH Luxury Ventures Fund Takes Minority Stake in Norwegian Luggage Brand Db
-
EXCLUSIVE: A.P.C. Names New Chief as Owner L Catterton Gears Up for Growth
-
EXCLUSIVE: Scalp Care Brand Divi Gains Minority Investment From Norwest
A market source confirmed Rothschild was putting feelers out, but said it is still not clear what kind of deal either L Catterton or the Etro family is looking for, whether a full exit or the sale of a stake. Speculation about a disinvestment has been circulating on and off for years.
Cardinali is also an investor in Etro and on Friday had no additional comment.
L Catterton acquired its stake in Etro with the aim of growing the Italian fashion brand’s customer base, expand into new categories, enhance its digital presence and drive global expansion, with a focus on the opportunities offered by Asia.
Financial sources close to the operation at the time pegged the value of the deal at 500 million euros for a 60 percent stake.
Founder Gerolamo Etro, known as Gimmo, was appointed chairman of the company, which was established in 1968 as a textile firm and subsequently expanded into women’s and menswear and other products.
Since his arrival at Etro from Dolce & Gabbana shortly after L Catterton’s acquisition, Cardinali has inked licenses for eyewear with Safilo; for fragrances and home scent collections with Coty Inc., the first beauty license for the Italian house, and for Etro Kids with manufacturing specialist Simonetta.
Etro is designed by creative director Marco De Vincenzo.
In October, Cardinali unveiled another cornerstone of Etro’s lifestyle proposition with the brand’s first residential project in a partnership with Rams Global to design the interiors of the Tower Rams Beyond in Istanbul.
Etro has 130 stores worldwide, being mainly dependent on its retail channel. In 2024, it opened units in Dallas and Houston, as well as in Shenzen at the MixC Mall and in Bahrain at the Galleria Mall.