BERLIN — At its 25th annual shareholders’ meeting in Munich Tuesday, Escada chief executive Bruno Sälzer said insolvency is the “only alternative” to the financial restructuring plan the company revealed late last week.
The embattled fashion house is proposing a capital increase to raise the 30 million euros, or $39 million, needed to stay liquid during the current fiscal year. Sälzer said the restructuring and recapitalization plan must be completed by July. It also includes the restructuring of a 200 million euro, or $260 million, bond due in 2012, and calls for creditors to take a cut in repayment as well as extending the bond’s term. Furthermore, Escada is in negotiations with banks on existing and future credit lines.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"