History Two phases:
• Golden age (1976-‐1992): – Historical luxury brand since 1976 founded by Wolfgang and Margaretha Ley (family business) – Core competency : elegant evening gowns • color, quality, correct fit and elegance
– 2 main lines : Escada CollecRon & Escada Sport – 1990’s era of acquisiRons (Saint John’s Knit, Kemper, etc.)
• Decline (1992 – present (Feb 2011: case date):
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Death of Margaretha (designer) ExecuRve turn over and instability Lack of modernity
Insolvency in 2009 and acquisiRon by MiZal Steel Magnate
Conclusion: Escada benefits from a strong brand image but needs to gain modernity and solve its financial problems in order to stay in the game
Bruno Sälzer as CEO
• Failure of the preceding CEOs: – Franck Reinbolt (2006):
• High glamour image for the brand but process seen as too slow • New Store Concept
– Jean-‐Marc Loubier (2007):
• Former ExecuRve Vice-‐President of LV and President and CEO of Celine • Launched the ESCADA Excellence Program
– New younger, more casual image for the brand
• Sälzer‘s (former Hugo Boss