German fashion house Escada Group is sadly close to biting the dust, unfortunately it's not gold dust... with a share price slump of 45.2 percent, they are expected to file for insolvency later this week.
According to a Bloomberg article, "Escada’s collapse follows years of management upheavals, design flops and a contracting market that hastened the decline of the brand whose $10,000 robes are worn by stars including Demi Moore. More than 2,200 employees are affected by the insolvency which follows the failure of fashion companies including IT Holding SpA, owner of the Gianfranco Ferre label, and Christian Lacroix SNC.”
Bloomberg was unable to reach Escada spokesman, Frank Elsner, for an official statement. But it seems the writing is on the wall for this struggling luxury brand, which has 182 of their own shops and 225 franchise shops/corners in more than 60 countries, according to their website. Click here to read more.
You can also read more at Reuters where the headlines exclaim: Escada Future Uncertain As Insolvency Nears.