Escada, the renowned Munich-based women’s ready-to-wear label, has recently been acquired by US private equity firm Regent, signaling a significant turning point in the brand’s storied history. Established in 1976 by Margaretha Ley and Wolfgang, Escada initially enjoyed a period of prosperity before facing financial challenges that ultimately led to its liquidation in 2009. The brand was later purchased by Megha Mittal, daughter-in-law of Indian steel magnate Lakshmi Mittal, who endeavored to reorganize the company but struggled to reignite its growth.
After unsuccessful attempts at a turnaround, Megha Mittal made the decision to seek a new owner for Escada, putting the brand up for sale in February. Seeking to breathe new life into the struggling fashion house, US merchant bank Lazard was enlisted to identify a suitable buyer. Recent reports have indicated a decline in Escada’s revenues, with a decrease from €114 million in 2017 to an estimated €107 million in 2018, accompanied by a negative EBIT.
Regent, based in Beverly Hills, California, boasts a robust presence in the fashion industry and has a history of investments in various fashion-related ventures, including lingerie label La Senza and sports brands like Mavic Cycling Accessories. The firm also acquired the online sales club Brands4Friends from eBay in Germany and holds interests in newspapers, magazines, and TV channels.
As Regent prepares to finalize the acquisition of Escada in the coming months, the fashion industry is abuzz with excitement about the brand’s future under new ownership. With Regent’s track record of successful investments and industry expertise, Escada is poised for a potential resurgence and rejuvenation in the competitive fashion landscape. The upcoming chapter for Escada holds the promise of renewed success and growth, offering new possibilities for the iconic brand as it enters this new era.
For further information on this acquisition and Escada’s future prospects, you can visit their official website here. Additionally, for updates on Regent’s other fashion-related investments and ventures, you can explore their portfolio on their official website here.
