Escada files for bankruptcy

Luxury Goods

Escada has filed for bankruptcy protection.

The German maison has failed to secure an 80% approval rate from bondholders for its refinancing, so they have been left with no option but to file with the Munich court. The US subsidiary also filed separately for bankruptcy on Friday.

Escada was founded in 1976 by a Munich couple but is majority owned by Russian millionaire Rustam Aksenenko and German billionaires Wolfgang and Michael Herz.

It is of course hoped that a buyer can be found to rescue the label from insolvency. Naturally, a bargain price is to be had and the economic signs are now healthier with some investors willing taking on more risk going forward. Watch this space.