Escada is in the red! Katherine Heigl at the 2008 Oscars in a stunning Escada gown. Photo: Frazer Harrison, Getty Images

Things are looking grim for Escada.

The Munich-based luxury company is on the brink of bankruptcy, reports AFP.

The company currently only has enough liquidity to survive through August and has put together a debt restructuring plan that would have to be approved by 80 percent of its investors in order survive bankruptcy.

In addition, Escada's CEO, Bruno Saelzer states that they would cease trading if "98 of the 99 possible measures'" were not taken to save the luxury label, AFP adds.

Earlier this month, Saelzer told Bloomberg that he was optimistic the company would avoid insolvency, but things have taken a decidedly grimmer turn.

Since its start in the Seventies, Escada has been a red-carpet regular, including Katherine Heigl's sweeping red gown for the 2008 Oscars (see right).

Eva Herzigova is currently the face of Escada, but no word yet on whether advertising or other cutbacks are part of the 99 possible measures.

At this point, whatever it takes!