Thursday, 13 August 2009

Is Escada Next To File For Bankruptcy? – 13/08/09

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.

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au