The investment company L Catterton has initiated a recapitalization of the Italian fashion brand Etro in the amount of 15 million euros.
According to the magazine Milano Finanza, the most recent shareholders’ meeting was primarily about a capital increase and changes to the company’s statutes
Etro’s recapitalization was prompted by the significant losses in the 2022 financial year. The new changes include the issuance of 2.5 million new securities with a premium of 4.97 euros each.
A turnaround strategy will include a series of initiatives aimed at ensuring sustainable levels of profitability and liquidity.
In July 2021, Etro and L Catterton Europe announced the signing of an agreement under which the private equity firm will acquire a majority stake in the Italian fashion house. The Etro family retains a minority stake of 40 percent.
Etro wants to achieve an ambitious turnover of 500 million euros within five years. “It is a challenge but achievable thanks to the support of the new shareholders, the strength of the brand and the strategic plan that is being put into action,” said Etro CEO Fabrizio Cardinali at the Milano Fashion Global Summit 2022.
This translated post previously appeared on FashionUnited.com