BERLIN — Escada said its 200 million euro, or $280 million, bond exchange program would begin today, and that almost all the preconditions for the realization of its financial restructuring plan have been met.
The struggling German fashion house is offering bond holders a cash incentive if they accept the offer during the early-bird period, which ends July 14. The overall exchange period runs through Wednesday.
The bond restructuring is a central pillar of Escada’s rescue plan, which also calls for a capital increase of at least 29 million euros, or about $40.7 million at current exchange. Escada said it has received “conditional financing and subscription commitments” from members of the board of management; its key shareholders, the Herz family members, who hold a 24.9 percent stake; Spanish investor Bestinver, which holds about 10 percent, and a new investor, who the company did not name.
To cover its short-term liquidity as well as cash requirements during the restructuring period and beyond, Escada said it has sold the receivables from its fragrance and cosmetics license agreement with Procter & Gamble, along with rights, to Zadafo Verwaltungs GmbH. Michael and Wolfgang Herz hold an indirect stake in the company. Escada already has received 15.5 million euros, or $21.7 million, for the deal, and expects payment of another 1.5 million euros, or $2.1 million, in the next months.
Moreover, Escada said HypoVereinsbank, Munich, has agreed to maintain the existing bank guarantee line of 13 million euros, or $18.2 million, providing the exchange offer and capital increase are successfully completed. Escada added the German tax authorities have agreed not to tax any recapitalization gains arising from the restructuring plan.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)