FRANKFURT, July 29 (Reuters) - Escada (ESCG.DE) improved its offer to bondholders for a third time as it scrambles to raise cash in a bond exchange offer that will help bring its business back from the brink of insolvency.

Escada spring-summer 2010, Berlin - Photo: PixelFormula

The company said late on Tuesday 28 July it would offer bondholders an additional 10 Escada shares for each of their bonds. It also extended the subscription period for the exchange offer to Aug. 11 from Aug. 4.

Escada had asked its bondholders to sign up to debt restructuring before it runs out of money. The company, whose luxury gowns are worn by Hollywood stars such as Katie Holmes, has been struggling with falling sales in the recession.

Escada needs an 80 percent approval rate to exchange its 200 million euro bond. On July 14, Escada had said bondholders representing 37 percent of the bond amount had accepted the exchange. (Reporting by Maria Sheahan, editing by Will Waterman)