Etro is looking for a new partner. The name of Mayhoola, the Qatari fund that controls – among others – Valentino, has come up. The brand, which sees a misalignment of views between the Etro family and its reference partner L Catterton, has reportedly commissioned the merchant bank Rothschild to explore the market. A handover is not ruled out.
Etro seeks a new financial partner
Etro is looking for an external solution to its problems. There are mainly two. First: 2023 ended with a loss of EUR 32.5 million, compared to a red of EUR 23.6 million in 2022. Second: the relationship between L Catterton (who owns 62% of the shares) and the Etro family (at 38%) is not idyllic. Therefore, one solution – drastic and definitive – could even be the sale of the brand. For the time being, according to rumours, the shareholders are studying a corporate reorganisation. In fact, they have hired Rothschild to look for a financial partner.
Who is at the window?
At the window, writes Corriere della Sera, there would be industrial realities and funds. For example, Mayhoola for Investments, the Qatari fund owned by Rachid Mohamed Rachid that owns Balmain, Valentino and Pal Zileri. It remains uncertain who will sell the shares. Will it be just the Etro family to do so? Will there be a complete reorganisation of the shareholding structure? Will there be an exit strategy for both partners?
Meanwhile, in 2024
In 2024, according to leaks from the brand, the brand margins should improve. The reason: some initiatives to develop and strengthen digital activities. An example: the licences for perfumes and eyewear have been assigned to Coty and Safilo, respectively. (mv)
Images from etro.com
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