Escada, the German womenswear brand, has been sold to Megha Mittal, daughter-in-law of steel magnate Lakshmi Mittal, for an undisclosed sum.
Escada said in a statement late yesterday: “Today the insolvency administrator of Escada signed a sale and transfer agreement with one of the Mittal Family Trusts.”
The statement also said: “The board of management and the new investor have agreed to cooperate on the basis of the business strategy launched in mid-2008 securing continuity of the operative business.”
All assets, shares and subsidiaries of the Escada business will be transferred to Mittal, excluding those that serve as guarantor for the Escada bond.
Mittal won the bidding against a number of interested parties, with the other front runner being Sven Ley, son of Escada founder Wolfgang Ley, who confirmed this week that he had formed a consortium with Giacomo Santucci, former head of Gucci, and Italian investment group Borletti to make a bid.
Escada has received considerable interest from bidders since it filed for insolvency in August after it was hit by falling sales and failed to meet approval from bond holders on a proposed restructuring plan.
Escada currently has 45 stockists and three standalone stores in the UK. Yesterday the group sold its Laurèl, Apriori and Cavita brands to German private equity firm Endurance Capital.