Escada Will File Chapter 11 Sad News

Escada has been on the verge of collapse for some time, and now the label has exhausted pretty much every chance for survival. The house will file for insolvency this week after bondholders rejected a plan that would have allowed Escada to trade old debts for new notes. Only 46 percent approved the plan while 80 percent approval was required for the plan to go through, open credit lines, and give the label a fighting chance. Escada's board will meet today to discuss the next steps. Chief executive Bruno Saelzer had wanted to avoid insolvency (obviously) to protect the brand's image. If the bond swap had been approved, Escada would have received a loan of 13 million euros and a capital increase of at least 29 million euros. But that's neither here nor there now. - NY Post


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