Escada and Hugo Boss heading towards bankruptcy
Drops in global sales of more than 28 percent were recorder over at Hugo Boss, a sign that panic should strike both the german company and also the owners, Valentino Fashion Group.
The Group has recorderd losses also on the Valentino brand, despite efforts to restructure the company once designer and founder Valentino Garavani retired. The Escada Group finds itself in the same difficult situation; company officials publically announced that restructuring and possible bankrupcy procedures might be initiated.
In Eastern Europe, the best performing markets of Hugo Boss have been, until recently, Bulgaria, Ungaria, the Czech Republic and Poland, while Escada has recorded losses good results in Hungary, Bulgaria and the Czech Republic. In Romania, both brands had inadequate management, with both stores closing down in 2008.