As though we weren’t all tired of seeing the plaque of businesses coming under the steel toe of the current economic state, we can add Escada on the list of big body names to fall victim to the bitch we call recession. According to WWD , Escada AG officially filed for insolvency at the Munich district court on yesterday. Escada hasn’t been the only luxury brain looking for finanical stability, Prada has also been scrambling around to get their line of funds in check. Seeing as though German law doesn’t have Chapter 11, WWD reports that insolvency is the closest resolution to bankruptcy. Womens Wear Daily reports also state:

Escada employs 2,300 people, 600 of them in Germany. The fashion house noted the company’s subsidiaries both in Germany and abroad are not affected by the insolvency proceedings at this time. However, in individual cases where subsidiaries are guaranteeing the fulfillment of the 2005/2012 bond, which applies to the U.S., U.K. and Escada Asia Ltd., Escada said “restructuring and/or insolvency proceedings for these subsidiaries might be considered under the application of national laws.”

As depressing as it seems, I (personally) feel that there will be a light at the end of this financial dark tunnel. Let’s hope and pray it will come soon.

Source: WWD / Image Credit: ZUMA PRESS + FAME