Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Luxury designer Escada filing for insolvency

Share this article

Luxury designer Escada filing for insolvency
Photo: DPA
09:16 CEST+02:00
German luxury fashion group Escada will have to file for insolvency this week due to €70.3 million in debt and falling sales, the company announced in Munich.

The company informed its some 2,300 employees on Wednesday, and a board meeting is planned for the afternoon, when the company head will review further steps and plans to restructure the company.

Insiders say the insolvency application will be filed on Thursday. Escada management plans to present unsuccessful operational changes introduced in mid-2008 to the court.

The announcement came after Escada's efforts to recover from its financial woes failed. The company, which employs some 2,300, has come under increasing pressure in recent months after years of struggle.

Escada is among the most famous exclusive designer labels in the world, making 90 percent of its profits abroad. The company has 182 shops and 225 franchises in more than 60 countries. Their wares include clothing, fragrances, glasses and children's wear.

Europe's Leading Job Site for
International Talent - The Local Jobs
Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

Change the world with a master's degree from Sweden's Linköping University

Master's students at world-leading Linköping University (LiU) aren't there simply to study. They solve real-world problems alongside experts in fields that can create a better tomorrow. Do you have what it takes to join them?