Monday, August 24, 2009

Escada's End :(


Escada, a major fashion house based in Munich, Germany, has just declared bankruptcy after 36 years. The high end retailer was founded by Margaretha and Wolfgang Ley originally from Sweden and later bought by Procter and Gamble. They developed the brand into a sophisticated woman's line. Most outfits were trendy, yet classic and could be combined in a variety of ways. There were approximately 180 boutiques and 60 franchises worldwide,plus they sold additional merchandise in upscale department stores. They were also coordinated when it came to creating matching shoes, handbags, belts, and other accessories. They even had a collection of perfumes. At one time they had a lower priced line, Laurel. Louis Vuitton Moet Hennessey was considering buying Escada as well as another venture group, unfortunately this was not in the cards. The CEO of Escada, formerly of Hugo Boss, tried to get investors to bail Escada out but this was not successful. The recession effected this designer, but other big names such as Dolce and Gabbana, Prada, and Gucci have been analyzed to have a safer future in this troublesome time.

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