Upscale women's fashion firm Escada AG on Tuesday said it had agreed a long-term funding deal with its banks.

The company said the banks had agreed to maintain existing credit lines until the end of 2006 and also guarantee redemption of its 100 million euro ($111m) corporate bond issue, which matures next year.

Escada, which posted a four per cent slide in sales for fiscal 2002 to 772.9 million euros, issued a profit warning in June due to sluggish demand amid a weak global economic environment.