Escada America LLC filed for bankruptcy in Los Angeles on Tuesday, marking the latest leg in the brand’s financial struggles, WWD reported. The initial filing in federal bankruptcy court gave only the barest details of the division’s situation. The company estimated it owed $1 million to $10 million to a total of 100 to 199 creditors. It also listed assets of $1 million to $10 million. Many of the business’ largest debts were for rent and were listed as disputed. The top three creditors were all due rent and included 717 GFC in New York, which is owed $5.1 million; the Beverly Hills Wilshire Hotel, $2.5 million, and Samson Management Corp. in Queens, $1.3 million. The Mittal family sold the broader Escada business to Beverly Hills-based private equity firm Regent in late 2019. But the acquisition quickly ran headlong into the worst of the pandemic, which brought a massive disruption to fashion and a wave of bankruptcies. WWD reported in June 12 that the brand was struggling with some of its North American stores taken over by landlords and its corporate headcount reduced.
