The bankruptcy filing came on the heels of creative director Peter Som exiting the label, retailers losing interest in the brand, and parent company NexCen enduring significant trouble in selling off the brand. The parent company of Ann Taylor, Loft, Lane Bryant and other clothing brands is joining the parade of apparel retailers to file for bankruptcy … Weighed down by millions in debt and by poor business ventures, the Boston streetwear company, Karmaloop Inc., filed for Chapter 11 bankruptcy in March 2015. NOW: As of now, the brand appears to consist almost exclusively of licensed goods, such as fragrances, as well as its mid-market Ferre Milano collection of garments and accessories, which is sold on Yoox. I believed that the business would just continue to do well. Furla SpA has filed for bankruptcy “due to the impact of the Covid-19 pandemic on its brick-and-mortar and wholesale businesses,” the Wall Street Journal reported. British accessories brand filed for bankruptcy in England, according to WWD, the 31-year old, London-based brand was expected to receive a year’s worth of funding, but when the COVID-19 virus hit, the funding fell through, prompting the company to seek bankruptcy protection. Saddled with a $76 million debt, Yamamoto filed for bankruptcy protection in Japan. The American arm of French beauty products company L’Occitane filed for bankruptcy in Delaware Bankruptcy Court on January 26, with the company’s regional managing director Yann Tanini stating that COVID has caused the company to “more aggressively address the rapidly widening gulf between its brick-and-mortar retail revenue and its substantial lease obligations, which no longer reflect the market.” As reported by the WSJ, the company’s U.S. subsidiary is “behind on $15 million in rent and seeking to shed lease obligations after the Covid-19 pandemic cut into sales.”, Francesca’s voluntarily filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware on December 3. The Limited filed for Chapter 11 bankruptcy in January. for an undisclosed amount. Payless filed for Chapter 11 bankruptcy in St. Louis, listing liabilities of $1 billion to $10 billion and citing a plan to immediately close about 400 underperforming stores in the U.S. and Puerto Rico. “Restructuring the company’s debts will allow J.Mendel to face the current challenging luxury retail environment, and I am confident that this will allow the company to move forward with renewed financial stability, allowing us to focus on crafting the best designs for our devoted clientele,” said John Georgiades of Stallion Inc., J.Mendel’s controlling investor. J.Crew Instagram/@jcrew J.Crew filed for Chapter 11 Bankruptcy in May 2020, marking one of the first major retailers to do so since the coronavirus outbreak.While J.Crew has filed for Chapter 11 Bankruptcy, its online operations will remain open throughout the restructuring. After months of growing speculation, Forever 21 filed for Chapter 11 bankruptcy protection on September 29. The 35-year old retailer – which helped pioneer the early wave of fast fashion, bringing trendy, runway-inspired garments and accessories to consumers for cheap – said “the restructuring will allow it to focus on the profitable core part of its operations,” while closing to 178 of its 800 existing outposts, including some across the U.S. and most of its stores in Asia and Europe. Upon his appointment, Benz said he was “…planning an e-commerce push, collaborations with up-and-coming designers and established artists, an accessories range and, possibly, a line of home goods.”. It said in a release that a restructuring plan is expected to reduce the company’s funded debt by at least $630 million and provide increased financial flexibility. Three years after Nicole Farhi and Steven Marks sold off the label they launched together (and one year after Farhi ceased all work for the brand), the company filed for bankruptcy in the UK. While the revamp has not yet caught on, the JNCO jeans style – the long, massively baggy denim – is making its way onto the runway. The brand, which lists assets of as much as $50 million and liabilities of at least $100 million, stated that the sale to the Lion Capital affiliate “will be subject to approval of the bankruptcy court and may include a court-supervised auction in which other bidders may offer a higher price for the company’s assets.” However, “Lion remains confident in the long-term potential of the company’s business to be operated as a going concern in the future and has additionally committed to provide, subject to court approval, debtor-in-possession financing, which, when combined with the company’s projected cash flows, is expected to support its operations during the restructuring process.”. Le Tote revealed in a court filing that its companies reported revenue of about $253.5 million in 2019. Margo's LaMode – Dallas-based women's clothing store that closed in 1996 after corporate parent underwent bankruptcy reorganization Martin + Osa – Established in 2006 as the more mature counterpart to American Eagle Outfitters, the chain grew to 28 stores before millions in losses forced its parent company to discontinue it. Dubai-based Damac has acquired 100 percent of Roberto Cavalli SpA. … According to Bloomberg, “The court-supervised restructuring allows the business to keep operating, and thus avoid the calamitous and sometimes tearful impact on brides that often accompanies the collapse of wedding retailers.”, NOW: As of mid-January 2019, the bridal retailer announced that it had emerged from Chapter 11 bankruptcy and is poised for long-term growth. The nearly 200-year old department store chain’s owner, fashion rental start-up Le Tote Inc., filed for Chapter 11, as well. NOW: In early 2015, the fashion press was quick to proclaim that “JNCO is back in the spotlight,” set to officially relaunch in stores beginning in 2015. Tailored Brands, the parent company of Jos. The women’s clothing chain known for helping popularize Armani designs in the U.S. filed for bankruptcy as the sector struggled with growing competition and lower spending by teen shoppers. Lacroix’s fashion house operated at a loss every year since it was founded in 1987 under the umbrella of luxury conglomerate LVMH Moët Hennessy Louis Vuitton. As we’ve done in past years, we are keeping a watchful eye on the retail store closures and bankruptcies that affect the Canadian market. True Religion Apparel. NOW: PacSun restructured and emerged from bankruptcy in September, under new ownership of Golden Gate Capital. Yohji Yamamoto’s label began to experience financial trouble when “fashion conscious Japanese women turned to cheaper casual clothes amid the economic slump. That follows the department store bankruptcies of Sears and Bon-Ton in 2018. That's part of the story behind the bankruptcy filing and store closings at Brooks Brothers, which has been in business since 1818. Bill Blass Ltd. filed for Chapter 7 liquidation (the chapter of the Bankruptcy Code provides for “liquidation” – the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors), citing $192,000 in total assets with debts of $829,000. “Balenciaga designer Demna Gvasalia decided to tackle JNCOs. The Fiorucci and Edwin Co., Ltd have since been battling over the rights in the Fiorucci name with the Italian Supreme Court ruling in October 2016 that the designer’s estate may not use his name. “To facilitate the sale and reduce its debt burden caused by recent challenges, including the COVID-19 pandemic, Lucky Brand has initiated proceedings under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.”, Lucky Brand CEO and Matthew A. Kaness said in a statement, “The COVID-19 pandemic has severely impacted sales across all channels. “The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” RTW Retailwinds CEO and CFO Sheamus Toal said in a statement. The retailer was acquired in 2019 by online clothing-rental startup called Le Tote. Carven is looking for a buyer. This came shortly after shares in the company were delisted by the New York stock Exchange in April. Retail Woes: A Running List of Fashion & Retail Bankruptcies, Neiman Marcus Group filed for Chapter 11 bankruptcy on May 7, John Varvatos Enterprises and certain of its affiliates filed voluntary petitions for Chapter 11, Custom menswear brand J.Hilburn filed for Chapter 11 bankruptcy, filed for Chapter 11 bankruptcy protection, The major bridal dress chain abruptly closed an array of its stores in July, U.S. denim retailer True Religion Apparel confirmed that it has filed for bankruptcy protection, The Limited filed for Chapter 11 bankruptcy in January. NOW: Under a long-term licensing agreement with VF Corp. – which bought Rock & Republic’s trademarks at a bankruptcy auction last March – VF is manufacturing Rock & Republic’s denim component, with Kohl’s design and sourcing teams responsible for the rest of the apparel categories. Mohapatra also said the restructuring will allow him to start a more affordable second collection. “We will now work with the existing management team and broader stakeholders to assess all options available for the future of the group’s businesses,” Matt Smith, joint administrator at Deloitte, said in a statement. “When you look at the numbers, those types of stores accounted for over 50% of the bankruptcy store closings, and almost 60% of the non-bankruptcy store closings as well,” Berliner says. The women’s apparel chain revealed plans to sell the business, including its brick-and-mortar stores, although it stated that it still plans close about 140 of its 700 stores, as previously announced in September. 202-year old retailer Brooks Brothers filed for bankruptcy in a Delaware court on July 8. The retailer said it had secured $20 million in debtor-in-possession financing from a majority of its existing term loan lenders and entered into a $35 million asset backed loan with current lenders. So they borrowed a lot of money, they had too many stores, and their rents were too high.”, Johnson filed for bankruptcy and closed all of her 63 stores after falling into millions of dollars into debt. The retailer revealed that it has obtained support from “a significant majority of its creditors to undergo a financial restructuring, substantially reducing its debt load and interest payments and supporting continued operations during the COVID-19 pandemic and beyond.”, Canadian footwear and accessory retailer ALDO Group Inc. said on May 7 that it has filed for protection from creditors in Canada and the U.S. with plans to restructure and stabilize its business. Cache listed assets of $10 million-$50 million and liabilities of $50 million-$100 million. The expansion took “a heavy financial toll” and significantly increased operating expenses, court papers stated. Fashion jewelry chain Charming Charlie filed for Chapter 11 bankruptcy and entered into a restructuring agreement with lenders and equity sponsors. Wet Seal (like other similar chains) filed for bankruptcy at the end of 2015, hurt by stores like H&M and Forever 21 that woo young people with fast-changing selections of low-priced fashion. €5 every 4 weeks or just €50 €20 for the first year, €7 every 4 weeks or just €70 €30 for the first year. Aerosoles’ holding company AGI HoldCo Inc said it would continue to manage its stores and operate its businesses as “debtors in possession” and will significantly reduce the number of stores as part of the restructuring in an effort to realign the business with the changing marketplace environment. Loehmann’s filed for its latest round of Chapter 11 bankruptcy protection in federal bankruptcy court, indicating its plans to sell its remaining assets in an auction subject to the court’s approval. According to the brand’s site: “Under previous ownership, Cache went out of business and closed all stores. NOW: The mall brand exited Chapter 11 in September 2016 – with only 229 stores, as opposed the approximately 800 they previously boasted. Founded in 2007 by Charlotte Olympia Dellal, the brand has “an estimated the value of their assets at $3.26 million, dwarfed by liabilities of $19.2 million,” per Footwear News. After filing to Chapter 11 bankruptcy back in July 2017, listing assets and liabilities in the range of $100 million to $500 million, True Religion filed for a second time this month, citing the same level of assets and debts in its April 13 court filing, and asserting that although it wanted to wait out the COVID-19 crisis, it  “simply could not afford to do so.” In the near term, and “until our stores open up, we will be continuing as we have, to run our e-commerce businesses, in the same way we did prior to filing for Chapter 11,” CEO Michael Buckley said in a statement. Bank clothing store in August in San Francisco. For the uninitiated, Chapter 11 bankruptcy – one of the most commonly utilized forms of bankruptcy – allows a company to continue operating while it executes a reorganization plan. NOW: As of 2015, the company is bringing in roughly $2 billion per year, and is consistently making headlines for actively policing unauthorized uses of its intellectual property. Claire’s Stores Inc. filed its long-awaited Chapter 11 petition for bankruptcy court protection. The major bridal dress chain abruptly closed an array of its stores in July leaving brides and bridesmaids dress-less, panicked, and in limbo. Number of stores: 850. The New York-based company revealed that it will close all of its 13 brick-and-mortar stores and will liquidate its assets. The past year has consisted of a series of “watershed” moments in the world of retail. Sneaker maker Converse announced in early 2001 that it planned to close three North American production plants, which employed about 1,000 people, and to shift production to Asia as part of a bankruptcy reorganization. Once a staple merchant of California cool, PacSun wasn’t able to adapt as fashion trends left surfwear behind and over-expansion sapped its resources. retailers have filed for bankruptcy in 2020 so far: Select a retailer to learn more about their bankruptcy. Every effort at reinvention failed, and the company filed for bankruptcy, as the company’s shares were down 96 percent over the previous 12 months. The Montreal-based company said it filed for protection under the Companies’ Creditors Arrangement Act, which the Wall Street Journal likens to the U.S. Bankruptcy Code’s Chapter 11 (although Aldo claims it is more akin to Chapter 15), and that it has voluntarily applied for similar protection in the U.S. and is about to do so in Switzerland. Ascent Retail Group, which owns the Ann Taylor, Justice, Lou & Grey and Lane Bryant brands, filed a Chapter 11 bankruptcy petition with the United States Bankruptcy Court for the Eastern District of Virginia, stating that it will permanently close nearly all of its Justice stores, as well a number of Ann Taylor, Loft, Lane Bryant and Lou & Grey outposts. In March 2010, Phillips-Van Heusen (PVH) bought the Tommy Hilfiger Corporation for $3 billion, in a deal that was nearly seven times what PVH had paid for Calvin Klein in 2003. The company announced that all 250 brick-and-mortar stores will be closed. In April, First Heritage Brands, Sonia Rykiel’s parent company, sought court protection against creditors during its search for new ownership, which ultimately never came into fruition. Opening its first store in 1999, Papaya added about 50 new stores in the last six years. The Moores Clothing for Men at Uptown Centre will remain open as the company declares bankruptcy. I was devastated. The brand, instead, filed for Chapter 11. The New York-headquartered chain “secured $75 million in new financing from affiliates of Hilco Global and the Gordon Brothers Group to help it keep operating as it navigates the bankruptcy court,” but says it will shutter 15 of its current locations, including those in Chicago, Las Vegas and Seattle, “along with five smaller concept stores and seven Barneys Warehouse locations.” Barneys listed assets and liabilities in the range of $100 million to $500 million. A. Some lenders have agreed to loan the company $45 million to help it get through bankruptcy. Per WWD, “they did not include the company’s two Los Angeles area store leases.”. 3 Big Retail Bankruptcies of 2019 -- and 4 More That May Be Next A weakening retail landscape has sunk over a dozen big-name retailers so far, and there are plenty of candidates that may follow suit. Here is a look at some of the most recent fashion-related filings, as well as some significant ones dating back a bit further. actively policing unauthorized uses of its intellectual property. NOW: After shuttering its brick-and-mortar stores, the company has also “temporarily closed” its website, writing, “Please know that it has been such an honor to provide fashion for you and other strong, confident women for more than 50 years.” In addition, the retailer noted that all orders not already shipped have been canceled. A. NOW: Who knows? It is no secret that the retail industry has experienced rapid and significant change over the last several years. NOW: Online retailer Boohoo.com purchased Nasty Gal for $20 million as a stalking horse bidder. In its filings, Love Culture said it “plans during the bankruptcy process to close money-losing stores, restructure its debt and investigate options ‘including a possible sale of substantially all of its assets as a going concern.’”. Mariejoy T. / Yelp Styles for Less filed for Chapter 11 bankruptcy, hoping to avoid the rapidly expanding graveyard of mall retailers as the internet wreaks havoc. Many stress that the founders’ liking for expensive artisan fabrics and costly photography, together with its rapid expansion set the project to fail. As a result of its filing in French court, Carven has been “put into receivership,” a legal proceeding in which companies are placed into the responsibility of a legally-appointed individual, who acts as custodian of its assets and/or business operations. Filed for bankruptcy: Aug. 2 The nation’s oldest department … By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. Discount apparel retailer Loehmann’s sought bankruptcy protection after its Dubai government-linked owner failed to reach a debt-extension deal with creditors. Charlotte Russe filed for Chapter 11 bankruptcy protection over the weekend and revealed plans to close almost 100 stores in malls across the country. Diesel USA’s Chief Restructuring Officer Mark Samson told Reuters that “Diesel USA has no plans to close, but intends to exit some of its 28 stores.” Moreover, he said the company’s three-year business plan contemplates focusing on more profitable stores, improving its product lines and working with social media “influencers” to attract Millennials, “Generation Z” and other new customers. Neiman Marcus Group was pin-pointed as likely to resort to Chapter 11 protection given that “the debt-laden Dallas-based company has been left with few options after the pandemic forced it to temporarily shut all 43 of its Neiman Marcus locations, roughly two dozen Last Call stores and its two Bergdorf Goodman stores in New York,” according to CNBC. Fashion Group Roberto Cavalli to real estate developer Damac in July 2003, Nike expanded Converse. 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