German fashion Escada is finally acquired by Megha Mittal

The German fashion company Escada, who has filed for bankruptcy protection, announced in a statement issued on November 5 that the company will sell to Megha Mittal, the daughter-in-law of Indian steel giant Lakshmi Mittal.

Fashion Escada

Since August of this year, the German fashion company Escada AG has filed for bankruptcy protection because it could not obtain enough funds.

This Munich-based luxury brand company is famous for women's wear and Accessories. Escada was once one of the largest fashion brands in the world, and its sales revenue and profits have continued to decline in recent years. The company had hoped to reduce debt and obtain some direct liquidity through a debt restructuring program, but the bond swap program failed to obtain creditor support.


According to the German “Le Monde” report, due to frequent management changes and strategic mistakes, Escada’s performance in recent years has been in the downstream of high-end fashion brands, coupled with the global economic crisis sweeping across the US and Russia and other major markets, the first half of this year global Sales decreased by 24% year-on-year. In fiscal year 2008, the company’s sales revenue was 528 million euros and net losses totaled 70 million euros. In the first half of this year, as of April, the loss was 92 million euros.

Escada has 182 direct sales stores and 225 franchise stores in more than 60 countries and regions and employs approximately 2,300 people. A Escada spokesman said the brand will not disappear after bankruptcy. Indeed, such an international big name will not be completely dispelled by people's eyes because of the bankruptcy of a company. Its responsible person has been looking for new investors after he filed for bankruptcy protection.

Until a statement issued by Escada, a German fashion company that filed for bankruptcy protection on November 5, 2009, announced that the company will sell to Megha Mittal, the daughter-in-law of Indian steel giant Lakshmi Mittal.

Escada also stated that the company’s bankruptcy administrator signed a sales contract with the Mittal family trust on behalf of Megha Mittal on Thursday.

The transaction includes the company's operating business, including employees, ownership of the brand in the world, production department and sales network.

However, no relevant financial details have yet been disclosed.

Escada employs 2,300 people worldwide. The company had to file for bankruptcy protection in early August because it failed to extend its debt-servicing period.

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