Escada has sold off its Apriori, Cavita and Laurèl womenswear brands which operate under its Primera subsidiary, to German investment firm Mutares.
Mutares, which is based in Munich and which specialises in buying underperforming medium sized businesses, will take over 90% of each of the subsidiaries which operate the Apriori, Cavita and Laurèl brands. The remaining 10% will continue to be held by the Escada Group.
Escada Group put its Primera subsidiary on the market at Christmas after it swung to an operating loss of €15.2 million (£13.2m) for the year ended October 31 against a profit of €15.6m (£13.6m) the previous year. In April, Escada warned that it needed to financially restructure or “insolvency” would be the only option for the firm.
Apriori, Cavita and Laurèl generated sales of around €100m (£87.4m) last year.
Thomas Kleinhenz, director of mergers and acquisitions at Mutares and the former managing director of Puma Germany, will take an active role in managing Primera.
Kleinhenz said: “Together with the teams in Münster and Munich, we plan to quickly return to the brand’s former strength. The right measures will enable us to recapture the market positions of Laurèl, Apriori and Cavita and strengthen them further.”