German label Escada files for insolvency

Escada SE filed for insolvency proceedings at the Munich District Court on Tuesday.

The German luxury label said Wednesday the proceedings only concern Escada SE and no other companies of the Escada Group. The move will affect the jobs of 180 employees who work at the company’s headquarters and in eight of its stores in Germany.

The womenswear label said it hopes to be able to continue operations during the proceedings.

The company has suffered declining sales in recent years, further compounded by the Covid-19 pandemic and store closures.

The local court has appointed lawyer Christian Gerloff, a partner from law firm Gerloff Liebler Rechtsanwälte, as temporary insolvency administrator.

“Escada is one of the few German fashion brands that is recognised worldwide and has a great heritage,” Gerloff said in a statement. “We will try to clarify very quickly the future options of the company that is such an essential part of the Escada Group. The focus is initially on the continuation of business operations. To this end, I will soon be holding discussions with all key stakeholders.”

Photo credit: Angela Weiss / AFP

 

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