Mittal snaps up troubled fashion house Escada

The insolvent German fashion group Escada has been sold to Megha Mittal, daughter-in-law of Indian steel magnate Lakshmi Mittal, the firm said without providing financial details.

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An insolvency administrator signed late Thursday a contract with Mittal Family Trusts, which represents Megha Mittal interests, Escada said in a statement.

"All key assets of Escada AG's operative business as well as shares in Escada AG's subsidiaries will be transferred to the Trust," it added.

The deal, which includes global brand rights, production facilities and sales outlets, must still be approved by competition authorities, but the German company's main creditors have given it a green light.

"I am relieved. Uncertainty for our staff, clients and suppliers is ended," board president Bruno Saelzer said.

"With the Mittal family we have found an excellent partner. Now we can focus on the future," he added.

Escada, which employs around 2,300 people worldwide, was forced to file for insolvency in mid August.

German press reports have estimated the sale price at around €30 million ($45 million), to which might be added another €100 million in necessary investments over the next two years.