Business

Escada bagged by Mittal

The distressed German fashion house Escada was scooped out of bankruptcy by the deep-pocketed daughter-in-law of an Indian steel tycoon.

Megha Mittal — the 33-year-old relation of billionaire Lakshmi Mittal, who is CEO of ArcelorMittal — won Escada at an auction in Munich, Germany, for an undisclosed price, the company said yesterday.

As first reported by The Post this week, Mittal’s rival bidders included Beirut-based M1 Group, a private-equity firm that bought the Faconnable label from Nordstrom for $210 million in 2007.

Also vying for Escada, whose hundreds of owned and franchised boutiques worldwide include a Manhattan store at 715 Fifth Ave., was Sven Ley, the son of Escada founder Wolfgang Ley.

Ley told media this week he had teamed up in his bid with the former head of Gucci, Giacomo Santucci, and the Italian group Borletti.

Mittal’s victory is good news for Escada CEO Bruno Salzer. While Ley had planned to install his own management for a turnaround, Mittal has said she backs Salzer’s strategy of transforming Escada into an affordable luxury brand.

That means broadening Escada’s offerings beyond glamorous evening dresses with four-digit price tags, worn by Hollywood stars like Hilary Swank and Katie Holmes.

In a twist, sources said Mittal’s victory could be a defeat for Hartmarx. The Chicago-based suitmaker for President Obama recently has been seeking to lure away Escada USA CEO Anthony Lucia, promising a fat compensation package and a president’s title, sources said.