Mittal family to buy insolvent German fashion firm Escada

Munich :The family of Indian steel magnate Lakshmi Mittal is to buy insolvent German fashion house Escada, the company said Thursday.

Insolvency administrator Christian Gerloff signed a sale and transfer agreement with one of the family's trusts, said the statement released in Munich.

The price was not disclosed.

Escada was one of the top names in women's fashion, but a slump in sales forced it to file for insolvency in August.

At present it employs 2,200 people around the world, about a quarter of them at its headquarters in Aschheim near Munich.

Insiders said Megha Mittal, daughter-in-law of the steel magnate, was the driving force behind the purchase, which still has to be approved by competition authorities.

Under the agreement, key parts of Escada's business, including production, staff and distribution, will be taken over by the trust.

The sale came after Mittal beat out competitors in a bidding contest.