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By
Reuters
Published
Jul 7, 2009
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Escada would consider state aid request

By
Reuters
Published
Jul 7, 2009

BERLIN, July 2 (Reuters) - German luxury fashion house Escada (ESCG.DE) is considering applying for state aid once it has successfully completed its refinancing efforts, which are not yet certain, Escada's chief executive told Reuters.


Escada

Bruno Saelzer said demand for Escada's latest collection was stronger than expected, but the spring/summer 2010 collection may never hit the shelves.

Escada's future is entirely at the mercy of bondholders who have been asked to forego more than half of their investments as part of a rescue plan to avoid insolvency as early as August.

Escada -- known for draping stars like Christy Turlington and Katie Holmes -- said it has looked into asking for state aid, but realised quickly that without a successful bond swap it would not meet the various programmes' criteria.

"Everything depends on this bond exchange," the CEO said in an interview on the sidelines of the Berlin Fashion Week.

(Reporting by Eva Kuehnen)

(([email protected]; +49 69 7565 1244; Reuters Messaging: [email protected])) Keywords: ESCADA/

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