The Mittal Family Trust has agreed to buy bankrupt fashion line Escada. Megha Mittal, the daughter of billionaire Lakshmi Mittal, is the driving force behind the deal.
The Mittal family trust is buying Escada's main business, brand rights, production facilities and distribution network, the Munich-based company said late yesterday, without disclosing the purchase price. The sale will probably be complete by the end of this year, according to Escada spokesman Frank Elsner.
Megha Mittal, daughter of an Indian textile investor and a graduate of the University of Pennsylvania's Wharton business school, met Escada workers in Munich today. She said Chief Executive Officer Bruno Saelzer would keep his job and staff wouldn’t be cut, according to Elsner.
"It may well be a vanity project, but I'm sure at heart she would want to make it a success," said Asish Bhattacharyya, a finance professor at the Indian Institute of Management in Kolkata. "It's quite normal among Indian business families to open or buy a new business for family members."
Lakshmi Mittal, who now lives in one of London's most expensive homes, turned a family-owned Indonesian steel mill into the world's biggest steelmaker over 30 years through acquisitions. He ranks eighth on this year's Forbes list of billionaires, with an estimated fortune of $19.3 billion.
Megha Mittal is married to his son Aditya Mittal, chief financial officer of the family's main business, Luxembourg- based ArcelorMittal.
The Mittal trust signed the deal with the bankruptcy administrator.
Reports say that Megha is determined to restore Escada to its former glory. The price was not disclosed. We certainly wish Megha luck in her new venture.
