Escada bought by US private equity firm Regent
today Oct 30, 2019
A new chapter may be beginning at Escada. The renowned Munich-based women's ready-to-wear label, founded in 1976 by Margaretha Ley and her businessman husband Wolfgang, has been sold to US private equity firm Regent, according to a report by German magazine Manager Magazin. The deal is expected to be finalised in the coming months.
After a lengthy period of success, Escada went through a protracted slump, leading to its liquidation in 2009, when it was bought by Megha Mittal, the daughter-in-law of Indian steel magnate Lakshmi Mittal. Despite an in-depth reorganisation, the label has however failed to find new impetus.
As German business daily Handelsblatt reported a few weeks ago, Megha Mittal, who is also a minority shareholder in British label Peter Pilotto, put Escada on the market last February, tasking US merchant bank Lazard with finding a buyer. According to Handelsblatt, in 2017 Escada generated a revenue of €114 million, equivalent to an 8% decrease, and in 2018 it may have lost further ground, generating an estimated revenue of €107 million, with a negative EBIT.
Regent is based in Beverly Hills, California, and is an investor in other fashion-related companies, from lingerie label La Senza to a series of sports brands, among them Mavic Cycling Accessories. In Germany, Regent also bought from eBay the Brands4Friends online sales club, based in Berlin. Regent’s investment portfolio also includes several newspapers, magazines and TV channels.
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