Son of Escada founders mounts bid for brand
The son of Escada’s founding family has teamed up with Maurizio Borletti, chairman of Italian department store La Rinascente, in an to effort rescue the insolvent German womenswear business, according to reports.
Borletti and Sven Ley have launched a bid for the floundering fashion group according to a report in The Financial Times.
Reports suggest up to 12 potential buyers have expressed an interest in acquiring the business, including German lawyer Nickolaus Becker.
Vestar Capital Partners, a US private equity group, is thought to have also submitted a bid for the womenswear group. Vestar already owns luxury fashion business St John Knits, a US competitor of Escada.
Escada filed for insolvency in August after talks over a restructuring of a €200m (£183m) bond failed.
The business was forced to file for bankruptcy protection after sales slowed in the luxury market and its debts spiralled out of control. Escada attempted a refinancing deal but failed to get the necessary support from its bond holders.
KPMG is handling the sale of the business and was unavailable for comment.