Tchibo Owners Boost Escada Stake

Tchibo owners Wolfgang and Michael Herz are buying a “significant minority interest'' in Escada AG, a German luxury fashion brand.

The Herz brothers plan on buying shares
in a planned 50- million-euro capital increase at an issue price of
14 euros each, according to an e-mailed statement. Munich-based
Escada closed up 2.4 percent at 14.70 euros today in Frankfurt.

Escada also named former Hugo Boss AG
Chief Executive Officer Bruno Saelzer to CEO. Wolfgang Herz will join
Escada's supervisory board.

In addition, Escada announced a new 90
million-euro credit facility, replacing an existing loan in the same
amount.

Earlier this month, Escada said it
expects to post a loss this year after the clothing market
deteriorated, dragging sales at the company's BiBA chain lower in the
second quarter. It was the second time the company lowered its annual
forecast.