Fashion house Escada AG today (13 August) filed for insolvency - a move that was expected after the company's last-ditch bid to restructure its finances failed to find favour with shareholders.

The court in Munich has named Christian Gerloff LDD as insolvency administrator.

Escada says its national and international subsidiaries are not initially affected by the parent company's insolvency.

But it warns that for subsidiaries guaranteeing the fulfilment of bonds which are due for repayment in April 2012, restructuring and/or insolvency proceedings might be considered.

The company has been fighting insolvency for months, with debts running at EUR187.6m in April this year.

It had embarked on a number of restructuring measures, at the centre of which was a bond swap.

But just 46% of bondholders backed Escada's exchange offer, which would have seen them receive EUR400 (US$567) and ten shares for every EUR1,000 they had in old bonds.

In April, the fashion firm reduced its share capital and approved financial restructuring worth EUR30m (US$39.4m) to ensure its survival.

And in June it posted wider first half losses of EUR91.7m (US$127.7m) on lower sales and EUR55m in write-offs linked to the sale of its Primera unit.

Sales for the six months from November 2008 to April 2009 dropped by 23.9% to EUR 151m.