The retailer had to cut $13 million in costs during the pandemic and negotiate lower rents with landlords to keep operating.
Escada America was formed in 2009 from the previous bankruptcy of Escada USA. In 2019, Escada’s owners – the Mittal family – sold the company to private equity firm Regent.
Escada America filed for Chapter 11 bankruptcy citing the lingering effects of the pandemic and failed rental negotiations with some landlords. The retailer, which operates 10 stores in the United States, is aiming to close five such stores through bankruptcy, reorganization and repay creditors while avoiding ‘a meaningless liquidation’. meaningful and unnecessary’.
Fiber2 Fashion News Desk (DS)