Posted on 08/14/2009 5:26:49 AM PDT by TigerLikesRooster
Downturn Pushes Escada into Bankruptcy
Escada, the German luxury fashion brand, filed for bankruptcy protection with a Munich court, Bloomberg reported on Thursday. Escada was badly hit by the global economic downturn and had been negotiating with bondholders to restructure its debts, but the negotiations were broken off on Tuesday. Along with the recent bankruptcy of Lacroix, the French luxury clothing brand, the Escada case reveals the heavy toll the recession is taking on the high-end fashion industry.
According to French newspaper Le Monde, Italian luxury fashion brands are also suffering from serious financial woes. Gianfranco Ferre, one of the top Italian haute couture labels along with Armani and Versace, is on the verge of bankruptcy as its holding company IT Holding went under court receivership early this year. Jewelry maker Bulgari is struggling with a deficit of over 40 million euros this year, and Prada is looking for a new creditor as its financial situation has worsened. In Switzerland, watchmakers are also in a tight spot. Due to subpar sales, Zenith laid off 10 percent of its employees early this year and will soon sack an additional 70 people, one-third of its current work force, Le Monde reported.
Ping!
From Victor Davis Hanson this week:
When America Will Become Europe - Thoughts of Our European Future to Come
http://www.freerepublic.com/focus/f-news/2314991/posts
“The number of Gucci-like stores selling overpriced label junk like 200 Euro eye-glass frames and 1000 Euro leather bags to socialists is quite amazing.”
I guess there will be a good number fewer of those in the near future.
Gosh, maybe I can get that Prada purse I have been wanting at a cut-rate price. Have you ever seen a Prada purse...they are like the Holy Grail of purses to me.
bookmark for reading later.
High- end Department Store, Nordstrom’s, tanked today, too. LOST 27% in the second quarter:
“Nordstrom fell 1.89, or 6.4%, to 27.87, as its fiscal second-quarter profit decreased 27% with the high-end clothing retailer reporting lower same-store sales.”
http://online.wsj.com/article/SB125029772276033591.html
Not that I’ve ever bought anything there, but I rub elbows with people who do. Or rather don’t, anymore. ;)
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