Stylish investment

Megha Mittal beat out several other bidders, including a consortium led by Sven Ley, son of Escada founder Wolfgang Ley. No financial details of the deal have been disclosed.

Mittal, 33, has already paid a visit to the firm where she went on a shopping spree before introducing herself to the staff.

"Mrs. Mittal first of all went shopping this morning," Escada CEO Bruno Saelzer told the German newspaper Handelsblatt on Friday, November 6. "She bought items from the new collection and, of course, she got the usual staff discount," he added.

Saelzer described Mittal as the "ideal face of Escada" and the Mittal family as the company's "partner of choice."

"Now all that counts is to look forward," he said.

Megha Mittal's father-in-law is Lakshmi Mittal, the world's eighth richest man.

Cheered by workers

The company's new owner was given a warm welcome by several hundred workers, according to labor representative Ursula Dreyer.

"We cried for joy," she said. "She is our dream partner, not just that of the management."

She also quoted Megha Mittal as saying that getting involved with a fashion group was the "dream of a lifetime." She promised to hook up Escada with Indian suppliers, according to Dreyer.

Talks with unions on potential job cuts are to begin next week, said Dreyer, who is head of the company's works council.

At present, Escada employs 2,200 people around the world, about a quarter of them at its headquarters in Aschheim near Munich.

Same man at the helm

The Mittal family has approved a rescue strategy devised by Escada's chief executive, who will keep his job. He plans to develop a medium-priced line of clothing. Saelzer implemented a similar strategy at his former fashion company, Hugo Boss.

Megha Mittal, who studied at the US Wharton business school, lives in London with her husband Aditya. Lakshmi Mittal is also based in Britain. However, the fashion house's main operations are to remain in Munich.

Escada was once one of the top names in women's fashion, but a slump in popularity and sales forced it to file for insolvency in August after a restructuring deal fell through.

Escada's bankruptcy administrator on Thursday signed a sale agreement with Mittal Family Trusts, which represents the interests of Megha Mittal.

The deal "provides for a transfer of Escada AG's business operations, including employees as well as worldwide brand rights, production facilities and the sales and distribution structure to the trust," a company statement said.

afp/ap/dpa (jg)

Editor: Kyle James