RusBankrot
We know everything about bankruptcy
24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
Escada has filed for bankruptcy of its US subsidiary
A well-known brand of women's clothing and perfumery from Germany appealed to the court of America, having taken the advantage of the provisions of Chapter 11 of the Bankruptcy Code, and declared the insolvency of its North American branch Escada America. The reason for the bankruptcy of the company was a pandemic and difficult negotiations with landlords to reduce rental payments.
It is noted that during the process of litigation, many of the company's debts can be challenged. The company's largest creditor is New York-based 717 GFC, the debt to which is $5.1 million. What is more, Escada also has large rent debts to the Beverly Hills Hotel ($2.5 million) and Samson Management Corporation ($1.3 million).
Experts note that the American branch of the brand began the bankruptcy process 1.5 years after the parent company in Europe had initiated a similar procedure. Escada began experiencing financial difficulties back in 2019. Then a plan for the technical upgrade of equipment and a change in logistics models was developed.
We should remind our readers that the brand has existed since 1976. In 2009, the company experienced bankruptcy in Europe and the United States. Then Megha Mittal, the daughter-in-law of the owner of the steel corporation Arcellor Mittal, became its owner. In 2019, Escada was sold to private investors from the United States, Regent Joint Stock Company.
It is noted that during the process of litigation, many of the company's debts can be challenged. The company's largest creditor is New York-based 717 GFC, the debt to which is $5.1 million. What is more, Escada also has large rent debts to the Beverly Hills Hotel ($2.5 million) and Samson Management Corporation ($1.3 million).
The company operated a dozen outlets in the US - half of them Escada intends to liquidate as a result of bankruptcy.
According to the materials submitted to the court, the company plans to reorganize the business and thereby avoid closure. Escada's stated debt to creditors ranges from $1-10 million.Experts note that the American branch of the brand began the bankruptcy process 1.5 years after the parent company in Europe had initiated a similar procedure. Escada began experiencing financial difficulties back in 2019. Then a plan for the technical upgrade of equipment and a change in logistics models was developed.
It was assumed that the implementation of the plan would be based on offline sales, since e-commerce did not bring serious income to the brand.
The pandemic, which began in 2020, has confused all the plans. The lockdown announced in Europe and in the United States led to the closure of the Escada network outlets (there were 15 of them).We should remind our readers that the brand has existed since 1976. In 2009, the company experienced bankruptcy in Europe and the United States. Then Megha Mittal, the daughter-in-law of the owner of the steel corporation Arcellor Mittal, became its owner. In 2019, Escada was sold to private investors from the United States, Regent Joint Stock Company.
24.01.2022
