Fashion brand Escada files for bankruptcy by submitting the application in its original offices place, in Germany. Escada SE has petitioned the Court of Munich. The women’s luxury brand, which currently manufactures leather shoes and bags in Italy, claimed they want to carry on with their work activity in Germany while setting some development plans in the other branches. The company had formerly filed for bankruptcy in 2009.
Application for bankruptcy
Bankruptcy proceedings only concern Escada SE, not the other subsidiaries of Escada group, announced the company in a press release. The group is confident that filing for bankruptcy will enable them to carry on with their own operational activities and bring to completion the corporate reorganization, which has been going on for a while.
Heading for the USA
According to WWD, the German company has reportedly relocated a vast majority of its business works to a holding based in the United States. Other European activities, instead, have been moved to England. While talking to the above-mentioned news journal, a spokesperson of the company pointed out that Escada is not planning to relocate its key operations (such as wholesale, production and retail-related activities) far from Munich.
Application for bankruptcy is going to affect 180 employees currently working in the corporate offices and in the German selling stores, eight in total, as reported by Fashion United. For the time being, Escada SE’s top priority is to grab the opportunity to keep on doing their operational activities. The brand, founded in 1978 by Margaretha and Wolfgang Ley, changed ownership last year, in November, as Regent LP bought it out. Regent LP, a private equity enterprise headquartered in Los Angeles, is owned and managed by Michael Reinstein.
Pictures taken from escada.com