Escada files for bankruptcy

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Escada, the German fashion house, has filed for bankruptcy after it failed to line up financing.

The Munich based women’s ready-to-wear and accessory company suffered after a sufficient number of shareholders failed to support a debt-restructuring plan this week.

The filing will affect 2,300 employees. Shares of Escada have already lost over 70 percent of their value in the last three days. The bankruptcy filing will be examined by a judge in Munich who will then appoint an administrator for the company. Negotiations with the company’s bondholders on a restructuring deal fell through earlier this week.


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