Fashion icons Zegna and Etro fall like spacs and private equity swoop

Italian fashion icons Zegna and Etro fall as spacs and private equity firms plunge

Italian fashion house Zegna will go public later this year in a £2.3 billion Spac deal in New York.

The luxury retailer sells men’s suits and smart casual wear, including shirts for £1,330 and bomber jackets for £6,110.

Zegna has been a family business since it started as a fabric maker in 1910 in Trivero, in the Piedmont region.

Private equity firm L Catterton, which is backed by LVMH, owner of Luis Vuitton, has agreed to purchase a 60 percent stake in Etro (carried by the model, pictured)

It will be listed through a Spac – a special purpose acquisition company – called Investindustrial Acquisition Corp, whose chairman is Sergio Ermotti, the former boss of investment bank UBS.

The company wants to raise £640 million.

Spacs, also known as “blank check companies,” are empty companies that list on the stock exchange and raise millions from investors for the purpose of buying an existing business.

In another big move on an Italian family-run fashion group, a private equity firm backed by LVMH, owner of Luis Vuitton, has agreed to buy a 60 percent stake in Etro.

The L Catterton deal values ​​Etro at around £430 million, according to reports.

L Catterton also recently dived into trendy sandal maker Birkenstock.

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