admin LVMH investment vehicle L Catterton has initiated a 15 million euro recapitalisation of the Etro fashion house. According to Milano Finanza the primary purpose of its recent shareholders meeting was to address a capital increase and implement changes to the company’s bylaws.
Etro’s recapitalization was prompted by significant losses in its 2022 financial statements. The new changes involve issuing 2.5 million new securities at a premium of 4.97 euros each.
A turnaround strategy will involve a series of initiatives aimed at ensuring a sustainable level of profitability and cash generation.
In July 2021 Etro and L Catterton Europe announced the signing of an agreement which saw the private equity firm enter with a majority stake in the Italian fashion house. The Etro family retains a minority stake of 40 percent.
Etro said it aims to achieve an ambitious 500 million euros in sales within five years. “It’s a challenge but achievable, thanks to the support of the new shareholders, the strength of the brand and the strategic plan put into action,” Mr Cardinali said at the Milano Fashion Global Summit 2022.
