BERLIN — Escada has sold three of its Primera division labels — Apriori, Cavita and Laurèl — to the Munich-based holding company Mutares AG.
This story first appeared in the May 27, 2009 issue of WWD. Subscribe Today.
Under the agreement, which was completed Monday, Mutares will take over 90 percent of each Primera subsidiary for the fashion brands Laurèl, Aprior and Cavita. The remaining 10 percent interest will stay with the Escada Group for now, the German fashion house said. Details of the deals were not made public.
A specialist for medium-sized companies, Mutares’ portfolio includes Filtral Fashion Eyewear, the geographical information company SHH Gmbh, the leatherboard materials producer Ledertech and the Austrian iron castings firm Buderus Guss Komponenten.
The Primera business division also includes the largely vertical Biba bridge market brand, which Escada said it expects to sell to an unidentified investor “in the near future.”
Escada officially put Primera on the block in December as part of the group’s strategic reorientation and financial restructuring plan. In the year ending Oct. 31, Primera generated an operating loss of 15.2 million euros, or $22.7 million, compared with an operating profit of 15.6 million euros, or $21 million, the previous year. Sales declined 14.8 percent to 211 million euros, or $315.8 million. All dollar figures are converted from the euro at an average exchange rate for the respective periods.
The less-than-previously expected proceeds from the Primera sale required another Escada write-down, resulting in a balance sheet loss exceeding more than half of Escada’s capital stock.