Fashion manufacturer escada SE is insolvent and has filed for bankruptcy. The application was filed with the district court in munich on tuesday, the company announced on wednesday.
According to this, christian gerloff was appointed as preliminary insolvency administrator. Business operations are to continue until further notice. Other companies in the group are not affected, according to escada. Escada SE is, however, the central operating unit of the group.
The management’s goal is to continue business operations within the framework of a restructuring program that has already been initiated, escada explained. "We will try to create clarity very quickly about the future options that the company, as an essential company of the escada group, has when viewed realistically," explained the insolvency administrator. In addition, the company intends to begin negotiations "without delay" on the prefinancing of insolvency payments for the 180 employees affected at the head office and in eight plants in germany.
Insolvency administrator gerloff acts for the second time at escada. The brand had already experienced insolvency in 2009, in which gerloff had also been appointed. At that time, the company was sold to indian entrepreneur megha mittal, who sold it last fall to u.S. Financial investor regent. At that time, regent CEO michael reinstein had announced that he would take the company "to new heights.
The luxury women’s fashion brand had already suffered from a drop in sales in recent years. The consequences of the corona pandemic have made the situation even more difficult, the company said. The company no longer publishes current business figures. The last known figures date back to 2017. At that time, the company was in the red.
In the 1990s, escada was one of the world’s leading brands for luxury women’s fashion, generating sales in the billions of euros. Supermodels such as claudia schiffer, linda evangelista, cindy crawford and naomi campbell showcased the collections.