The financial crisis has claimed another fashion victim. German fashion house Escada, once one of the most powerful labels in the world, has filed for bankruptcy.
Insolvency soon became the only option for the brand after it failed to find sufficient backing for its rescue plan. It leaves behind some 180 shops and additional franchises in 60 countries around the world.
The luxury label, famous for handbags, ready-to-wear couture, and shoes, endured massive losses of 70.3 million euros in the 2007-2008 business year. It also suffered a 15 per cent drop in turnover. Even the appointment of former Hugo-Boss chief Bruno Saelzer could not turn things around. Let’s face it, with statistics like that the odds were stacked against him.
In its heyday, Escada was worn by fashion luminaries Princess Diana, Jerry Hall, Kim Basinger, and Demi Moore. There’s some talk that the brand may continue on, as Russian millionaire Rustam Aksenenko owns almost 21% of the stock and German billionaires Wolfgang and Michael Herz hold around 12.5% each. But at this stage the German label’s future is uncertain.
[Image Source: Brian Taipei/Flickr]
