The fashion world (including Fashionista herself) now sleeps more easily knowing that the UK arm of luxury brand Escada has been rescued from the brink of extinction in a pre-pack administration.
Escada UK has been sold to the Mittal family (best known for their successes in the steel industry), who in November also rescued the German parent company, Escada AG, by snapping it up at auction.
Fashionista is delighted to hear that according to reports Megha Mittal, the daughter-in-law of steel magnate Lakshmi Mittal, is optimistic as to Escada's future:
“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…"The recent difficulties to which Megha alludes include the German arm of the brand filing for bankruptcy protection in August this year, and the UK arm making a loss for the past 3 years.
A-list fans of the brand (including, Fashionista is told, Katie Holmes and Hilary Swank), will of course, be thrilled, as will all 44 members of the Escada UK staff - they have had their jobs safeguarded in the deal. Those who may not be so pleased are the creditors – pre-packs have a notorious reputation for leaving them out in the cold. KPMG (Escada's administrators in the UK) were quick to deny this though, stating (according to Drapers) that, “Given the inseparable nature of Escada UK and Escada AG, the offer from Mittal Trust represented the best deal for creditors of Escada UK.”
Fashionista is now eagerly awaiting news on how Escada's CEO, Bruno Salzer (previously of Hugo Boss) and the Mittals intend to exploit what Megha Mittal believes is Escada's potential. Watch this space…