Escada’s US arm has followed its German parent company in filing for insolvency.
The Munich-based luxury fashion house filed for bankruptcy on Friday and was followed this week by Escada USA.
Escada told WWD that the US arm had followed suit in order to stabilise Escada’s important American business, which accounted for approximately 20% of the group’s sales in 2008. An Escada spokesperson said that the move was “a crucial first step in the overall restructuring of the group.”
The group saw its latest restructuring proposal rejected by bondholders last week and received interest from a potential buyer, Munich lawyer Nickolaus Becker, yesterday.