Yet another one bites the dust?

Well, not yet. However, Escada is obviously facing a number of problems — and the recent cheer over Goldman Sachs’s and JPMorgan Chase’s stellar earnings have not spread to the fashion industry.

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.

Escada FW '09: Going Gentle into that Good Night?

Escada FW '09: Going Gentle into that Good Night?

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.

This entry was published on July 17, 2009 at 5:20 am. It’s filed under Uncategorized and tagged , , , , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

5 thoughts on “Yet another one bites the dust?

  1. Pingback: Yet another one bites the dust?

  2. saythefword on said:

    oops! wordpress classified you as spam! eh sorry hor lor pple a bit nerdy here ok!!!

    but that’s really interesting– i’m going to make sean read it.

  3. fastcarshighfashion on said:

    as someone who has to work with escada everyday, i would not blame them. the merchandise is just not as luxurious and exciting like it was.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: