Etro Founding Family Exits as New Investors Join, Including Turkey's RAMS Global

Post by : Saif Nasser

Italian fashion house Etro is entering a new chapter as the founding family sells its remaining minority stake in the brand. The move brings in new investors, including Turkey’s RAMS Global, while L Catterton, a private equity firm backed by French luxury giant LVMH, remains the majority owner.

Etro, founded by Gimmo Etro in 1968 and known for its signature paisley designs, has faced financial challenges in recent years. The company reported a net loss of 23 million euros last year, with revenues falling to 245 million euros from 261 million euros. L Catterton first acquired a 60% stake in the brand four years ago and gradually increased its holding over time.

The new group of investors also includes Italian fashion group Swinger International and a small private equity firm, RSI. In addition to buying the stake from the Etro family, they participated in a capital increase that will slightly reduce L Catterton’s holding to between 51% and 55% from around 65%. Sources close to the deal estimated the combined transaction and capital increase at roughly 70 million euros ($82 million), though the company did not officially disclose the financial details.

Under the new ownership structure, Chief Executive Fabrizio Cardinali will remain in charge of day-to-day operations, while Faruk Bülbül, representing RAMS Global, will assume the role of chairman of the board. Etro emphasized that L Catterton will continue to actively support the brand’s long-term growth strategy.

The deal follows a search for investors that began in 2024 when Rothschild was hired to find new partners for Etro. The aim was to bring in investors who could help stabilize the brand, expand its global reach, and support its creative and commercial turnaround.

The exit of the founding family marks a significant milestone for Etro, as it moves further into the hands of global investors. While the company has struggled to maintain profitability in recent years, the involvement of new investors and the continued backing of L Catterton signal a commitment to reviving the brand and ensuring its growth in the competitive luxury fashion market.

With RAMS Global taking a leadership role on the board, industry observers expect Etro to pursue stronger international expansion and possibly new creative collaborations. The fashion house, which has long been celebrated for its bold patterns and innovative textiles, now seeks to combine its heritage with fresh strategic guidance from global investors.

This latest development highlights the growing trend of luxury fashion brands seeking investment from international groups to balance creative identity with financial stability. For Etro, the challenge will be to maintain its iconic style while adapting to a global market with changing consumer preferences and rising competition.