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Escada files for bankruptcy

Published on 14 Aug 2009 under category: legal

A German fashion brand has filed for bankruptcy, it has been revealed.

The Escada label took the action on Thursday (August 13th), after commenting earlier in the week that it was preparing for this.

This comes after the firm failed in an attempt to rescue the business and its 2,300 workers, bankruptcy solicitors may be interested to hear.

The brand, which has around 180 outlets in 60 countries around the world, filed for bankruptcy in Munich.

Investors in the firm have been advised to cash in their loans at a reduced rate, with these individuals being offered ten shares and 400 euros (£345) for every 1,000 euros in bonds.

Earlier this week, telecoms company Nortel commented that it had stablised while under Chapter 11 bankruptcy protection.

The firm revealed better than expected results for the second quarter, after having filed for Chapter 11 in January, insolvency solicitors may be interested to hear.