Escada Auctioned Out Of Bankruptcy

Megha Mittal won the bidding war for Escada yesterday, beating out Sean Ley, the son of Escada's founder. CEO Bruno Saelzer will remain onboard. Mitall believes in Saelzer's plan of turning Escada into an affordable luxury label with more daywear, rather than relying on exorbitantly priced red-carpet gowns. 

Megha Mittal 33-years old is married to Aditya Mittal, heir to Lakshmi Mittal, the world's largest steel maker. Megha Mittal has a degree in finance and strategic management, and has a postgraduate degree in architectural design from Inchbald School of Design in London. 

Escadas Has Friends In High Places

Escada file chapter 11 in August, but insiders say approximately ten to twenty very wealthy parties are interested in reviving the line. A source says "fashion companies, financial investors, and wealthy families from all over the world have handed in non-binding offers to Escada's insolvency administrator." Those making the most promising offers will get to study Escada's books before submitting official proposals. -Huffington Post

Escada Will File Chapter 11 Sad News

Escada has been on the verge of collapse for some time, and now the label has exhausted pretty much every chance for survival. The house will file for insolvency this week after bondholders rejected a plan that would have allowed Escada to trade old debts for new notes. Only 46 percent approved the plan while 80 percent approval was required for the plan to go through, open credit lines, and give the label a fighting chance. Escada's board will meet today to discuss the next steps. Chief executive Bruno Saelzer had wanted to avoid insolvency (obviously) to protect the brand's image. If the bond swap had been approved, Escada would have received a loan of 13 million euros and a capital increase of at least 29 million euros. But that's neither here nor there now. - NY Post