Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Escada insolvency looms

German fashion house Escada has failed to get enough backing for a crucial part of its financial restructuring plans and said it will file for insolvency this week.

Escada failed to reach the 80% approval rate for its bond exchange. Only 46% of bondholders agreed to the swap, which offered them €400 (£344) and 10 Escada shares per €1,000 (£860) of debt. The restructuring was needed to set up future credit lines and allow a planned capital increase to go through.

The tender period for the bond exchange of €200m (£171.9m) expired yesterday.

Escada said in a statement: “As previously communicated … the board of management intends to file for the opening of insolvency proceedings due to imminent illiquidity of Escada AG this week.”

The supervisory board will meet today to discuss the retailer’s next steps..

The bond swap was an essential part of a refinancing plan announced by Escada in April.



Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.