The fashion industry and the steel industry: how do they mix? It seems pretty well, as Megha Mittal, the daughter-in-law of Indian steel magnate Lakshmi Mittal, just became the new owner of Escada. The International fashion group filed bankruptcy in August after a restructuring plan collapsed, and several potential buyers seemed to have been interested.
Megha Mittal had several rivals in her attempt to buy the company, including the head of Gucci, and a consortium led by Sven Ley, the son of the founder of Escada.The financial information of the deal that went down with Mittal remains undisclosed, but it has been reported that, including debt, the company is worth approximately 100 million Euro ($149 millionUSD). Escada was purchased through the Mittal family trust, and the family approved a rescue strategy created by Escada’s current CEO Bruno Salzer.
The restructuring of the fashion group will now begin, with a mix of new but also existing successful strategies. Megha Mittal, 33, lives in London with her husband, and has a degree in finance from Wharton Business School, but the company’s main operations are to remain in Germany. Mittal has been quoted as saying it’s “a dream of a lifetime” to be connected with such a fashion group, she intends to serve as a brand ambassador with Bruno Salzer remaining as CEO.