Italian fashion group Etro is reportedly in talks with buyout firm L Catterton regarding a potential acquisition. The family-owned company, assisted by Rothschild, is at the preliminary stages of discussions with the private equity firm. L Catterton, established through a partnership with Catterton, LVMH, and owner Bernard Arnault, has not yet commented on the matter. The COVID-19 pandemic had a severe impact on the fashion and luxury industry in 2020, leading to a decline in sales and prompting various M&A deals within the sector. Given this backdrop, L Catterton’s interest in Etro comes as no surprise. According to reports, Etro reported a core profit of €16 million in 2019, and this potential acquisition could provide a much-needed boost for the company as it seeks to recover from the challenges posed by the pandemic. With its longstanding reputation for vibrant paisley patterns, Etro has become a beloved brand within the fashion industry. Despite its global recognition, the company remains a family-run business that upholds its heritage and the vision of its founder. The outcome of the talks between Etro and L Catterton could have significant implications for the future of the Italian fashion brand and the wider fashion and luxury industry as a whole.

Useful links:
1. Etro Official Website
2. L Catterton Official Website