Escada in talks with insolvency experts
German womenswear brand Escada may cease to trade as it teeters on the brink of insolvency, according to its chairman Bruno Saelzer.
Saelzer reportedly told German newspaper Welt Am Sonntag that talks had already taken place with insolvency experts.
He said he hoped it would not come to that, but that the group was in a difficult situation. He said it had enough liquidity to last until August but not beyond.
Escada has put a debt restructuring plan to its creditors which must be approved by 80% of them by July 31. If that fails, Saelzer said it would be “inevitable” that Escada would cease trading because “98 out of the 99 possible measures” to save the company had already been taken.
In the UK, Escada has a standalone store in London’s Sloane Street, concessions in Harrods in London and Gleneagles Hotel in Scotland, and a store at Heathrow Terminal 4.
The Escada mainline collection has 27 wholesale accounts in the UK and the Escada Sport range has 43 UK doors.
Escada sold its mid-market subsidiary Primera, which included brands Laurèl, Cavita and Apriori in May.
Parkers has been appointed the UK and Ireland agent for Laurèl, as reported in Drapers last week. Cavita and Apriori continue to be managed by Michael Hellin in the UK.