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Sven Ley confirms Escada bid

Sven Ley, the son of Escada founder Wolfgang Ley, has confirmed that he has bid for the German luxury fashion house with backing from Borletti, following speculation last week.

Ley has joined forces with the former head of Gucci, Giacomo Santucci, and Italian investment group Borletti, which owns the La Rinascente department store in Italy and Printemps in France, to mount a rescue bid for the struggling womenswear label.

Escada, which has 45 stockists and three standalone stores in the UK, filed for insolvency in August after it was hit by falling sales and failed to gain approval from bond holders for a restructuring plan.

The consortium, which is operating under the name ZSL Partners, has bid almost €80m (£71.7m) for the fashion house, according to Reuters.

ZSL Partners told Reuters that it would work to raise Escada’s sales to more than €500m (£448m) by 2014 without making major job cuts in Germany and would name Santucci as chief executive. The consortium also confirmed that the bid was financially backed by a group of wealthy families, and that Borletti would lend its support.

The consortium is reported to be among a four bidders still in the running for Escada. A source close to the situation told Drapers that a buyer is no longer expected to be announced this week but that the situation should be finalised by the end of November.

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