Insolvent Escada AG will not close Primera-transaction

The board and the preliminary insolvency administrator of Escada AG, Dr. Christian Gerloff, will not proceed with the closing of the purchase agreement for the Primera group. The board decided to withdraw from the contract it had originally signed with mutares AG on May 25, 2009.

Together with the teams in Munich and Münster mutares had already made significant progress in the turn-around of the Primera group, particularly in the working capital management and the reduction of general costs. Backed by several guarantees mutares contractually committed itself to continue the business of the Primera group in its current form. Additionally, mutares had an approved financing line of € 7.5 m. available for the Primera group.