German fashion house Escada has filed for bankruptcy protection.
The move came after Escada said yesterday that it had failed to secure an 80% approval rate from bondholders for its refinancing.
A spokeswoman for Munich Local Court said that it had received Escada’s filing.
The decision follows months of negotiations to secure the company’s future as debt spiralled and the luxury market was hit by the downturn.
Escada’s collapse follows the bankruptcy of German retail group Arcandor in June. Arcandor, which operates the Karstadt department store chain and Primondo mail-order company, said yesterday that it wasfacing abreak-up after failing to find a single investor.
Escada was founded in 1976 by a Munich couple. Its biggest investors include Russian millionaire Rustam Aksenenko and German billionaires Wolfgang and Michael Herz.