By  on February 9, 2009

After less than a year in operation, Ley International Fashion Company AG succumbed to the global recession and filed for bankruptcy in Munich on Friday.

Escada founder and former chief executive officer Wolfgang Ley launched his namesake Collection Wolfgang Ley for spring-summer 2009. Targeted at fashion conscious, but not necessarily reed-thin, baby boomers, the enterprise was personally financed by Ley, who put up 1 million euros, or $1.6 million, in starting capital.

He told WWD last year that the company was “100 percent financed by myself. That may be stupid, but it’s better not to be dependent on a bank.”

Ley said in a statement that the economic crisis, especially in the core markets of Russia and the U.S., made it almost impossible for a young brand to establish itself.

“Despite high financial and personal engagement and promising reaction from leading retailers and fashion journalists, we have not been able to reach the necessary level of turnover,” he said.

Thomas Rath, who designed the German women’s wear collection Riani, was head of design for Collection Wolfgang Ley. Klaus Windisch, a former Escada contractor, director of the label Stiff and a master tailor, was a board member for production and quality control.

A Munich-based bankruptcy trustee has been appointed to oversee the company’s further operations.

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