Private equity firm L Catterton and Italy’s Etro family have hired Rothschild to look for a new investor who could buy all or part of the Etro fashion group, two sources close to the matter said on Friday.

L Catterton, which is backed by French luxury giant LVMH , bought a majority stake in the Italian company in 2021, while the founding Etro family kept a minority stake of around 40%.

L Catterton is struggling to turn around the brand despite fresh cash injections.

The Milan-based group, which was founded in 1968, reported a 5.8% drop in 2023 revenues to €261 million ($276 million), with an adjusted core loss of €12.7 million.

Net debt stood at around €46 million at the end of 2023, according to the balance sheet filed with the local chamber of commerce.

L Catterton was not immediately available for a comment. The Etro family and Rothschild declined to comment.