(Source: LuxuryBrandNetwork.com)

Munich-based Escada AG is seeking investors to rescue it from insolvency.  The company filed for protection in August after a planned bond exchange failed.

German newspaper Sueddeutsche Zeitung reported that a consortium anchored around Sven Ley, the son of Escada founder Wolfgang Ley, has submitted an offer.  While that report said Italian investment house Borletti participated in that bid, a spokesperson for the group denied its participation in the Ley bid.

The Financial Times had erroneously reported that final bids for Escada were due by Oct. 23.  Just this week, however, the company announced it has retained KPMG's Munich M&A division to find and negotiate with potential investors.

The company's preliminary insolvency administrator, Dr. Christian Gerloff, says the Board has "received a series of interested queries from potential investors."  According to Gerloff, "this interest indicates the strength of the Escada brand."

LBN Comment:  Escada may have a strong brand, but it has weak financial performance:  Escada suffered a loss of €91.7 million on a 24% revenue drop to €151 million for the first half of 2009.  Interested parties should call KPMG Munich (Tel: +49 89 9282-00).

(Posted 3 Nov 2009)