Italian fashion group Etro is considering an expression of interest from buyout firm L Catterton, a source close to the matter said on Monday.

The source added that talks between the family-owned company, assisted by Rothschild, and the private equity firm are at a preliminary stage.

L Catterton declined to comment. Etro was not immediately available for comment.

The pandemic led to an unprecedented fall in sales for the fashion and luxury industry in 2020, prompting M&A deals.

In the last few months Italian fashion group OTB acquired German label Jil Sander and down jacket maker Moncler agreed to buy smaller Italian high-end streetwear and fashion brand Stone Island.

The interest of L Catterton - a buyout firm created through the partnership between Catterton, LVMH and its owner Bernard Arnault - for the Milan-based group, was first reported by Italian daily Il Sole 24 Ore.

The group reported a core profit of 16 million euros in 2019 the newspaper said.

Etro, famous for its colourful paisley patterns, was founded by Gimmo Etro as a textile company in Milan in 1968 and is still a family-run business.