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Escada America Files for Chapter 11 Bankruptcy – WWD

Escada America LLC filed for bankruptcy in Los Angeles on Tuesday, marking the latest leg in the brand’s financial struggles.

Initial filings in federal bankruptcy court gave only the tiniest details about the department’s situation. The company estimates it owes between $1 million and $10 million out of a total of 100 to 199 creditors. It also lists assets between $1 million and $10 million.

Many of a business’s biggest debt is rent and is listed in dispute. The top three creditors are all due on rent and include the 717 GFC in New York, owed $5.1 million; Beverly Hills Wilshire hotel, $2.5 million, and Samson Management Corp. in Queens, $1.3 million.

Mittal family sells more widely Escada business for the Beverly Hills-based private equity firm Regent in late 2019.

But the acquisition quickly fell to the worst of the pandemic, bringing major disruption to fashion and a wave of bankruptcies.

WWD reported on June 12 that the brand is struggling with some of its North American stores being taken over by landlords and the company’s headcount decreasing.

In September of that year, a department in Germany file for default (second trip to default there, filed in 2009).

At the time, Escada pinned the filing in Germany about the pandemic.

“We have made great strides to improve our operations and are on track to outperform the results from the last financial year until COVID-19 swept the globe,” an internal memo said. write. “Unfortunately, the human and economic tragedy caused by the pandemic has profoundly affected the luxury retail and fashion sectors.”

Escada America’s attorneys and Regent’s representatives could not be reached immediately on Tuesday.

This story will be updated as more details become available.

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https://wwd.com/business-news/financial/escada-america-files-for-chapter-11-bankruptcy-fashion-1235039147/ Escada America Files for Chapter 11 Bankruptcy – WWD

Linh

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