We should have seen this coming, really. A couple of weeks back, Escada sold off three brands to Mutares, a German investment firm. This pretty much reflects what the economy has done to Escada and the brands (once) under its wing:
Escada Group put its Primera subsidiary on the market at Christmas after it swung to an operating loss of €15.2 million (£13.2m) for the year ended October 31 against a profit of €15.6m (£13.6m) the previous year.
Now, Escada needs support from 80% of its bondholders (think of them as creditors) for a bank loan. Bruno Saelzer, Escada’s CEO, “is optimistic he can win over bondholders”. Really?
Coincidentally, for anyone who’s interested, CIT thought it would get bailout.