Etro is said to be a target of Mayhoola for Investments, the Qatari investment firm that controls Valentino and Balmain. The news was reported by Italian newspape Il Messaggero, which wrote that Mayhoola, owned by the Qatari royal family, is interested in acquiring a 100% stake in the Italian label for approximately €200 million. According to Il Messaggero, Mayhoola’s offer is looked upon favourably by Gefin, the Etro family’s holding company, though it is said to be a little shy of the figure asked for by the L Catterton investment fund, which bought a 60% stake in Etro in 2021 and remains its majority shareholder.

Meanwhile, L Catterton reportedly increased its stake in Etro to over 70% a few months ago. According to Milanese fashion and finance magazine MFFashion, “Etro’s extraordinary AGM was held in the offices of notary Maddalena Ferrari last December. The AGM approved a share capital increase of €13,260,098.34, of which €2,221,122 through the issue of 2,221,122 new shares at the nominal value of €1 each, with a surcharge of €4.97 per share, equivalent to a total surcharge of €11,038,976.34.” The operation led to L Catterton, with LVMH’s Bernard Arnault among its shareholders, increasing its stake in Etro. Contacted by FashionNetwork.com, Etro declined to comment.
 
Still according to MFFashion, the notary’s formal document “stated that Massimo Longoni, representing SL 11 [an investment vehicle in which L Catterton owns a 90% stake] has expressed the partner’s willingness to assume in full these capitalisation commitments in favour of the company, should the entitled parties decide to waive their option for the increase.” Ippolito Etro has issued a statement on behalf of the family that founded the eponymous label in Milan in 1968. According to MFFashion, “[Ippolito Etro] said that Gefin S.p.A. has stated it waives the option right to which it is entitled on the capital increase proposed today, and the related formalities/obligations required by law and the company statutes.”

Rumours that L Catterton is keen to sell off Etro have been circulating for some time. The French investment fund is struggling to relaunch the label, despite the new injections of fresh cash mentioned above.
 
Last month, L Catterton and the Etro family gave Rothschild the mandate to seek one or more new investors willing to acquire Etro wholly or partly.
 
In 2023, the Etro group recorded a 5.8% downturn in revenue, down to €261 million, and an adjusted core loss of €12.7 million. Net borrowing amounted to around €46 million at the end of 2023, according to the financial statement filed with the local Chamber of Commerce.