Further troubles for ESCADA
Troubled Munich-based luxury fashion brand Escada is planning to lay off hundreds of employees in an effort to remain competitive in the luxury market. To reduce costs, the German womenswear retailer will cut 200 out of its nearly 2000 jobs worldwide, most of them at its headquarters in Aschheim near Munich, in Germany.
The existing restructuring process of Escada has been insufficient, said the company’s interim CEO, Jörg Wahlers, on Thursday. In August, Wahlers took on the position of CEO of the Escada group on an interim basis after its former chief executive, Glenn McMahon, stepped down after seven months in the role.
The luxury label is now focusing on the expansion of its e-commerce business to keep up with current shopping habits of its worldwide customers. According to the German newspaper, Die Welt, the company’s operations in Russia and China have seen a major downturn in the last months.
In November 2009, Escada was acquired by Megha Mitta, daughter in law of India’s London-based billionaire Lakshmi Mittal.