BERLIN — To ensure its survival, the Escada Group is launching a broad financial restructuring and recapitalization package to raise 30 million euros, or $39 million at current exchange, needed to keep the company liquid this year, as well as reduce debt and secure medium- to long-term financing.
Late Thursday, the embattled German fashion house released a four-part financial restructuring plan, details of which are still being fine-tuned.
Subject to approval at the firm’s annual shareholders’ meeting Tuesday, the plan calls for a 30 million euro capital increase in July. Escada’s largest shareholders, Wolfgang and Michael Herz who, after last July’s 50 million euro, or $65 million, capital increase hold a 24.9 percent stake, are said to be willing to invest up to 20 million euros, or $26 million, more. This, however, is dependent on the German financial supervisory authority BaFin allowing the Herz brothers to refrain from issuing a mandatory takeover offer for the other shareholders.
The second part of the plan foresees converting a 200 million euro, or $260 million, bond that’s due for repayment in 2012 into a new bond. In accepting the deal, creditors would agree to take a cut in bond repayment and to extend its term. Escada said conditions of the exchange offer are being worked out.
The company said it is also actively negotiating with banks on existing and new credit lines, and plans to complete the financial restructuring in July.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)