![]() The company – which was launched by its eponymous founder in 2006 – “said the board of Christopher Kane Ltd. FTS – which has been appointed as the liquidator for the Julien Macdonald company – further stated that “no employees or existing contracts could be saved.” FTS will sell the 25-year-old, London-based company’s remaining inventory and other assets in order to seek repayment for creditors.Ĭhristopher Kane has entered into administration and is looking for a buyer, the London-based fashion brand confirmed on June 21. Julien Macdonald lost a significant proportion of revenue following the collapse of Debenhams at the end of 2020,” with cashflow issues being “compounded by general inflationary costs, which impacted on all aspects of the business,” FTS Recovery said in a statement. “The business fell into trouble during the Covid pandemic which affected all aspects of the retail sector. The eponymous label of Welsh designer Julien Macdonald initiated liquidation proceedings on July 24, citing economic instability. “This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners.” “Over the past year, we have taken significant steps to fortify our financial standing including rightsizing our business to better match current market conditions,” Bridgit Lombard, Soft Surroundings executive chair, said in a statement. Louis-based retailer’s parent company Soft Surroundings Holdings LLC says it will close the womenswear company’s 44 leased stores and sell its online and catalog business to Coldwater Creek as part of the Chapter 11 plan. Bankruptcy Court for the Southern District of Texas in Houston on September 10, citing up to $50,000 in estimated assets and between $50 million and $100 million in estimated liabilities. Soft Surroundings filed for Chapter 11 bankruptcy in U.S. Here is a look at some of the most recent fashion and retail-related bankruptcy filings … (Also included below are instances in which brands have entered into administration, an insolvency process in the United Kingdom by which a company is “placed under the control of an insolvency practitioner to enable the insolvency practitioner to achieve objectives laid down by statute.”) Fashion and Retail-Related Bankruptcies This is followed by the debtor proposing and executing a reorganization plan, which may be used to compromise or even eliminate certain classes of debt.Īll the while, the debtor usually remains in possession of his assets and continues to operate any business, subject to the oversight of the court and the creditors committee. Typically, a company that has filed for Chapter 11 bankruptcy trying to stay in business, and as indicated below, this complex proceeding can be very effective in solving short term business problems in an otherwise viable company or winding down a company with valuable assets. Chapter 11 can take a number of forms, but in short: A chapter 11 case begins with the filing of a petition with the bankruptcy court by the debtor (the entity that owes the debt – aka the retailers in the cases at hand). They were swiftly followed by a handful of additional filings by other retailers, signaling that there is no end in sight to the constant string of fashion and other retail companies struggling financially and looking to bankruptcies courts for protection from their creditors.įor 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. On the heels of an array of fashion and retail bankruptcy filings that began to unfold over the course of the year in 2016, New York-based designer Bibhu Mohapatra and retailers The Limited, Wet Seal, and Payless all made headlines when they filed for Chapter 11 protection in early 2017.
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