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.

“Management and employees hope the group will continue to exist,” a spokesman for Escada told AFP.

“Everything will depend on what form the bankruptcy will take,” he said.

The bankruptcy filing will be examined by a judge in Munich who will then appoint an administrator for the company.

Negotiations with the company’s bondholders on a restructuring deal fell through earlier this week.

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