Escada

Summary

German luxury fashion brand Escada is synonymous with timeless elegance, bold designs, and high-quality craftsmanship. Established in 1978, Escada quickly rose to prominence for its combination of sophisticated tailoring and vibrant patterns, becoming a favorite among women seeking fashion that reflects confidence and femininity. Over the years, the luxury brand expanded its global presence, offering a wide portfolio of ready-to-wear pieces, fashion accessories, and fragrances.

Despite its legacy as a leader in high-end fashion, Escada faced significant financial challenges in the late 2000s and filed for insolvency in 2009 due to declining sales, mounting debts, and changes in consumer preferences. Today, after undergoing restructuring and ownership changes, Escada has been working to regain its foothold in the competitive fashion industry. While the brand faced difficulties, it continues to appeal to a loyal customer base and is focused on revitalizing its image with fresh designs and a renewed emphasis on sustainability and innovation.

History

Back in the Eighties, Escada carved a niche on the fashion landscape for its bold, feminine designs and was worn by none other than late Princess Diana and actor Kim Basinger. Founders Margarethe and Wolfgang Ley had transformed their modest Munich-based business into a global fashion brand. Revenues reportedly topped $800 million in 1991, the year before Margarethe died of cancer. Following her death, business collapsed and slid downhill.

To recap, Escada was founded in 1978 by Margaretha and Wolfgang Ley in Munich, Germany. Being a former fashion model and having a solid foundation in tailoring from the Royal Court in Stockholm, Margaretha Ley became popular for her bold, feminine designs. 1978 saw the first presentation of Escada womenswear, which featured the most beautiful inlays and appliqués, unusual combinations of colors and patterns, and elaborate knits.

Escada was on a roll. In the course of its international expansion, Escada SE went public in 1986, with the founders retaining 51 per cent of the stock. In addition to the Escada label, the company also manufactured women’s wear under Crisca, Laurèl, Apriori and Natalie Acatrini, produced Cerruti 1881 women’s through a licensing deal and owned a majority stake in St. John Knits and Badgley Mischka. What’s more, Escada introduced its first fragrance in 1990.

After Margaretha Ley passed away after a long battle with cancer in 1992, Michael Stolzenburg and Todd Oldham respectively served as the fashion brand’s design directors. In 1993, the company sold its share to St. John Knits. Two years later, it launched Escada Sport and an accessories collection.

In 2001, Escada’s first lingerie collection was made and distributed by Hanro, Switzerland. With the exception of Escada Sport, the company discontinued all of its lines in 2001, such as Escada Weekend or Escada Couture, focusing only on the main brand. After twelve  years in the category, Escada exited the beauty business in 2002 by signing a long-term, worldwide licensing agreement with Wella for the manufacturing and marketing of fragrances and cosmetics.

In 2006, Damiano Biella joined Escada as creative director. A year later, artist Stefan Szczesny created a new collection in Saint-Tropez, France. From 2008, Bruno Sälzer served as Escada’s CEO. Under his leadership, the company sold its Münster-based subsidiary Primera AG, which comprised the brand’s Apriori, Cavita, and Laurèl lines as well as BiBA to financial investor Mutares. Shortly after, there was a plan to raise reported 29 million euros in a rights issue as part of a bigger plan to restructure its debts. It was not successful.

On 11 August 2009, Escada filed for insolvency at Munich Local Court, as an exchange offer for the outstanding bonds of 200 million euros was not accepted by the necessary 80 per cent of all bond holders. Sven Ley, the son of founder Wolfgang Ley, allied with former head of Gucci, Giacomo Santucci, and Italian investment group Borletti to offer almost 80 million euros for Escada.

In November 2009, the company was eventually acquired by Indian steel dynast Lakshmi Mittal, whose daughter-in-law, Megha Mittal, emerged as the new the owner and became chair of the company’s board. Following the sale, Bettina Hammerl and Daniel Wingate took charge of Escada’s fashion design department. There were several structural changes. Sälzer stepped down as CEO by December 2014 and was succeeded by Glenn McMahon. From 2016 until 2019, Iris Epple-Righi served as Escada’s CEO.

Regardless, supermodels Claudia Schiffer, Linda Evangelista, Cindy Crawford, Christy Turlington, Naomi Campbell, Karen Mulder, Paulina Porizkova, Nadja Auermann and Rachel Zimmermann, film stars and other celebrities were frequently seen wearing looks from the label. Escada then named British singer Rita Ora as the face of the fashion brand’s spring summer 2019 campaign and she released a version of the Escada Heart Bag which she helped design; a portion of proceeds from its sale was given to ‘Women for Women International’.

“I‘m so excited and honoured to be the new face of Escada for their #EscadaSS19 campaign,” Ora told her followers on Instagram. “It’s all about strong colours, strong messages and strong women.” “Rita exemplifies the ESCADA spirit: powerful and playful, whilst totally in charge of her own destiny,” the brand wrote on its Instagram page.

Sadly, there was further turbulence down the road. Mittal sold Escada in October 2019 to Regent, L.P. a global private equity firm in Beverly Hills, California. By September 2020, the company again filed for insolvency, with plans to limit corporate operations in the country and further limit its retail presence.

Per the official website, “Today Escada has interpreted its brand values in a new, updated way: cool glamour, sensual femininity and modern elegance are the hallmarks of the Escada brand line. The brand offers a lifestyle concept filled with everything from must-have everyday items for business and leisure to red carpet occasions. The ‘Escada Sport’ line today represents creative casual wear for sexy, dynamic women with a youthful spirit who love an easy, uncomplicated and relaxed chic… Innovative fabrics, high quality detailing and embroideries as well as excellent fit and exclusive workmanship reinforce the high-end level of all Escada collections.’

Vision

Escada envisions itself as a global leader in luxury fashion, known for its timeless elegance, bold designs, and commitment to innovation. With a focus on empowering women, Escada seeks to create fashion that resonates with confidence, femininity, and strength. By combining classic silhouettes with contemporary trends, the brand aspires to inspire women to embrace their individuality and express their personal style through each carefully crafted piece. Escada’s vision is to continue setting new standards in high-end fashion, driven by a passion for excellence and an unwavering dedication to quality.

At the heart of Escada’s vision is a commitment to sustainability and ethical practices. In an ever-evolving fashion industry, the brand understands the importance of responsible production methods that respect both the environment and the people involved in the process. Escada aims to lead the way in implementing eco-friendly materials and processes, ensuring that its fashion is not only luxurious but also sustainable. The brand’s vision includes fostering a culture of innovation that pushes the boundaries of design while adhering to ethical principles that promote positive change in the industry.

Escada also envisions itself as a brand that goes beyond fashion, fostering a sense of community and inclusivity. The company strives to connect with its customers on a deeper level by understanding their desires and needs, creating a space where fashion becomes a medium of self-expression for everyone. By building a brand that transcends borders and cultures, Escada aims to create a lasting legacy in the fashion world, one that celebrates diversity and champions individuality, all while delivering the highest standard of luxury and craftsmanship.

Mission Statement

Escada’s mission is to empower women through fashion, offering luxurious and innovative designs that enhance confidence, individuality, and elegance. The luxury fashion brand is dedicated to creating high-quality pieces that blend timeless sophistication with modern trends, ensuring that every woman feels bold, beautiful, and comfortable in her own skin. Escada’s commitment to excellence drives its passion for crafting garments that not only look stunning but also inspire a sense of empowerment and self-expression in every wearer.

Central to Escada’s mission is a strong focus on sustainability and ethical fashion practices. The fashion brand is committed to reducing its environmental footprint by embracing eco-friendly materials and responsible production methods. In addition to creating exquisite fashion, Escada strives to lead by example in fostering positive social and environmental change within the industry. By maintaining the highest standards of craftsmanship and sustainability, Escada aims to create a meaningful impact that aligns with both its values and the evolving needs of conscious consumers.

Products and Services

Escada offers a diverse portfolio of luxury fashion products that cater to women who seek sophisticated and stylish clothing. Known for its bold, vibrant prints and elegant silhouettes, Escada’s collections include everything from timeless ready-to-wear pieces to accessories such as handbags, shoes, and eyewear. The fashion brand’s attention to detail and commitment to using high-quality materials ensures that each item reflects the utmost craftsmanship and design expertise. Whether it’s a tailored blazer, a stunning evening gown, or a statement handbag, Escada’s products embody a blend of classic elegance and modern sensibility, making them ideal for women with a taste for both tradition and innovation.

In addition to its fashion collections, Escada offers personalized services to enhance the shopping experience. The luxury fashion brand provides tailored styling consultations to help clients find pieces that suit their unique tastes and lifestyle needs. Escada’s commitment to customer satisfaction extends to providing a luxury shopping experience that is both seamless and exclusive, whether through in-store visits or online shopping platforms. With a dedication to exceptional service, Escada ensures that every customer feels valued and has access to the brand’s sophisticated world of high fashion.

The ESCADA Group operates in 24 countries throughout North America, Europe and Asia. With around 1,100 points of sale, ESCADA is present in eighty countries worldwide.

Key Team

Escada Chairman Michael Reinstein is the founder and chairman of multi-sector private equity firm, Regent. He began his career as an intern under former President Ronald Reagan and later worked at ICM Partners. He is currently the chairman of several Regent businesses, including Escada, La Senza, Sassoon, Regis Salons, Supercuts UK, Lillian Vernon and Sightline Media Group. He also serves as the publisher of Regent’s newspapers, magazine and media properties. Interestingly, Reinstein is also founder of Military Charity Organization, a Washington D.C. based non-profit that operates the Service Members of the Year Honours Program.

References

• Official website Escada
• Hanro launches Escada lingerie WWD
• Rita Ora Is Escada’s New Brand Ambassador WWD
• Escada Owner Said in Advanced Talks to Sell Brand WWD
• Twitter page of Escada Twitter
• Wolfgang Ley: Escada is on Road to Recovery WWD
• Meet The Ultra-Glamorous Muse Behind Escada’s AW19 Collection Vogue
• Escada Restructures, Hammerl Takes Design Reins WWD
• Facebook page of Escada Facebook
• Oldham will join Escada NY Times
• Rebooting Escada BoF
• Escada Resort 2021 Vogue
• Youtube page of Escada Youtube
• Escada Fall 2020 Vogue
• Rita Ora’s Escada Collection Gives Red A Reboot Vogue
• Escada Fall 2019 Vogue
• LinkedIn page of Escada LinkedIn
• Escada Spring 2020 Vogue
• Escada files for insolvency WWD
• Escada Spring 2019 Vogue