Escada Declares Bankruptcy

From AFP:

German luxury women’s fashion label Escada declared bankruptcy on Thursday, contrasting with an upbeat mood after official data showed Germany had emerged from recession in the second quarter.

The company, which counts US actress Kim Basinger among its customers and whose clothes have been advertised by supermodel Eva Herzigova, employs 2,300 people around the world including around 600 in Germany.

“Management and employees hope the group will continue to exist,” a spokesman for Escada told AFP.

“Everything will depend on what form the bankruptcy will take,” he said.

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.

Another one bites the dust.