The company has filed for bankruptcy protection. Photo: Andreas Rentz, Getty Images

German luxury label Escada has filed for bankruptcy protection.

Known for dressing celebrities such as Katherine Heigl, Katie Holmes and Hilary Swank for red carpets worldwide, Bloomberg reports the filing came after months of failed negotiations that ended a plan for a bank loan and new capital.

Founded as a knitwear company in 1976 by husband and wife Wolfgang and Margaretha Ley, Escada employs more than 2,200 people across the globe.

The fashion house offers apparel, accessories and fragrance collections.

The face of retail is changing, with many familiar store closing their doors. Is this the end of the line for Escada?