It has to be a bitter-sweet moment (or perhaps simply bitter) for the family of Wolfgang Ley, founders of fashion brand Escada. On the one hand, the Escada name and brand is saved from bankruptcy and will live to fight another day. On the other, it will do so under new control - that of India's Mittal family.
Megha Mittal, the 33-year old daughter-in-law of ArcelorMittal Chief Executive Lakshmi Mittal won a bidding war with Sven Ley, son of Escada founder Wolfgang Ley who had teamed up with Italian investment group Borletti (owners of la Rinascente department store in Milan and Le Printemps department store in Paris) to save the insolvent brand from bankruptcy. Escada will now be owned by a Mittal family trust.
The least we can say is that the credit crisis and ensuing recession has not been kind to independently-owned luxury labels. The near-demise of Christian Lacroix and the current turbulence at Versace suggest that the luxury landscape will look decidedly different when this recession ends. If nothing else, we live in interesting times.
Sincerely,
The Luxe Chronicles
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