Although luxury line Escada had reported it was experiencing financial troubles lately, the news still came as a shock when the company announced last week that they were waiting for a group of creditors to approve a complete debt restructuring plan. With the state of the company's finances, 80 percent of the creditors need to approve the plan, otherwise the label will be forced to cease trading. Escada chairman Bruno Saelzer, while not thrilled with the current state of things, says the company has tried "98 out of the 99 possible measures" to keep the label from disintegrating. The label does have sufficient funds to keep operating until August, and had hired Eva Herzigova to be the label's face for their fall 2009 campaign. But all parties involved continue to cross their well-manicured fingers because if the creditors do not approve and no other solution can be found, Escada will inevitably go under.
Article and Photo Source: newyorkmag