fashionologie

Founder's Son Loses Bid on Escada to Mittal Family

fashionologie — Thu, 05 Nov 2009 14:29:02 PST

>> Billionaire Lakshmi Mittal's 33-year-old daughter-in-law Megha Mittal, who has been looking to make an investment in the fashion industry for the past year and previously expressed interest in Gianfranco Ferre, will acquire Escada for an undisclosed price. Mittal won the bidding war against Sven Ley, son of Escada founder Wolfgang Ley.

The management board 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," according to a statement released; the previous board of management will stay intact. Mittal supports Escada CEO Bruno Saelzer's intentions to turn Escada from the eveningwear legacy of its heyday into more affordable daywear.

Escada Should Have A New Owner by Week's End

fashionologie — Wed, 04 Nov 2009 11:25:32 PST

>> Escada, which has floundered in recent years and ultimately filed for bankruptcy in August, is expected to have a new owner by the end of this week, sources told Reuters today. Three bidders are in the running - among the most serious are Sven Ley, son of Escada founder Wolfgang Ley, who teamed up with former Gucci head Giacomo Santucci and Italian investment group Borletti (which also recently made a bid on Christian Lacroix) and Megha Mittal, daughter-in-law of billionaire Lakshmi Mittal.

If Ley's group wins out, they plan to replace current Escada CEO Bruno Saelzer with Santucci, whereas Mittal supports Saelzer's approach of turning the brand away from its evening gown legacy and repositioning it in affordable luxury.