Press Trust of India / New Delhi Nov 06, 2009, 14:20 IST
Megha Mittal, daughter-in-law of India-born billionaire Lakshmi Mittal, will buy insolvent Escada, an iconic European luxury fashion house, for an undisclosed amount.
Megha Mittal today confirmed that her bid for Escada has been accepted. "Our first priority is to ensure that the great heritage of this iconic company is translated into a strong and successful future," she said.
Escada, an international fashion group for women's apparel and accessories has 182 own and 225 franchise shops in more than 60 countries. Earlier, in August the iconic fashion house filed for insolvency after declining sales had a negative impact on the balance sheet of the company.
"Despite recent difficulties, Escada has the potential to re-define its place in the world of luxury brands and become synonymous with fine quality and elegance," Mittal said.
The board of management (of Escada) and the new investor (Megha Mittal) have agreed to cooperate on the basis of the business strategy launched in mid-2008 securing continuity of the operative business, Escada said in a statement.
"The insolvency administrator of Escada AG has signed a sale and transfer agreement with one of the Mittal Family Trusts," Escada said, adding that the preliminary creditors' committee has approved the transaction.
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