The luxury fashion chain Escada had to file for bankruptcy in early September. Now the company is saved. But almost all branches have to close.
The luxury women’s fashion chain Escada from tranquil Aschheim near Munich has been saved. The former owner, the US financial investor Regent, is buying back the troubled company and pulling it out of bankruptcy, as the office of the insolvency administrator Christian Gerloff confirmed on Monday. The “Manager Magazin” had previously reported.
This was the only option for the insolvency administrator to continue business operations. Because Regent had secured the trademark rights of Escada, another investor could not have been found.
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For parts of the company, however, the agreement that has now been concluded means the end: “The activities that have not been taken over, including seven of the eight Escada stores in Germany, will be discontinued at the end of February 2021,” says von Gerloff. “We are currently unable to provide further details.” Out of 180 employees, around 100 go.
Princess Diana was also one of Escada customers
Escada filed for bankruptcy at the beginning of September due to the corona pandemic. The luxury women’s fashion brand had already suffered from declining sales in recent years. The company said at the time that these were significantly reinforced by the consequences of the corona epidemic.
The company went bankrupt in 2009. After several changes of ownership, the US investor Regent took over the company in 2019.
Escada not only sells luxury fashion such as coats, dresses or belts, but also watches and jewelry. The British Princess Diana was one of the customers.