Megha Mittal will buy the luxury fashion house Escada for an undisclosed price, the company said on Thursday and keep CEO Bruno Saelzer onboard.

Escada, an international fashion group for women’s apparel and accessories has 182 own and 225 franchise shops in more than 60 countries.

Earlier, in August the iconic fashion house filed for insolvency after declining sales had a negative impact on the balance sheet of the company.

German fashion company Escada AG filed for bankruptcy after being unable to obtain sufficient financing, a Munich district court said Thursday.

The company carries around $100 million in debt and has struggled over the past year as the market for luxury goods has declined.

Founded as a knitwear company in 1976 by husband and wife Wolfgang and Margaretha Ley, Escada employs more than 2,300 people across the globe.

Luxury fashion house Escada is on the brink of collapse after announcing today that it needs €30 million in liquidity by October 31 to make up for the year-on-year loss.

Chief Financial Officer Markus Schuerholz said that an attempt to raise urgent funds by restructuring and raising further capital will be made over the next few weeks.

The announcement followed the first quarter earnings report that indicated a €6.3m loss.