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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast