Following “challenging conditions in the UK,” the brand hoped for a turnaround in the company’s fortunes, but were derailed further by the fact Aquascutum’s royalty rights for the Asian market, a high growth area for luxury goods, have belonged to Hong Kong’s YGM Trading since 2009. Bankruptcy is the biggest faux pas in fashion retail. Discount retailer Century 21 filed for bankruptcy in U.S. Bankruptcy Court in New York, “blaming the bankruptcy filing on its insurance providers’ decision to not pay about $175 million it said it should have received under policies to protect against business disruptions amid the coronavirus pandemic,” per the WSJ. Following a sluggish holiday season, the beleaguered retailer is taking more drastic steps to slim down as it copes with slow traffic and weak sales in key categories, such as handbags. 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. Penney is considering filing for bankruptcy protection as the retailer grapples … The 48-year-old launched her eponymous accessories label in 2013 after co-founding luxury shoe label Jimmy Choo. Its privately-held Breganze-based parent company, which was founded by Adriano Goldschmied and Renzo Rosso in 1978, is not part of the filing. The Paper Store, a specialty gift store with 86 locations in the Northeast, filed for Chapter 11 bankruptcy on July 14 and said it was seeking a sale. Teen apparel seller Papaya Clothing has filed for Chapter 11 bankruptcy protection. In 2015 the brand closed 14 of its stores in China amid declining sales, but opened one in Europe. Despite a string of extended deadlines during which time the court received bids for the brand, whose eponymous founder died in 2017, came up short after entering into receivership – the French equivalent of Chapter 11 bankruptcy protection in the U.S. – this spring. As Vaccines May Soon Make Travel (and Travel Retail) Widely Possible, What Are the Key Issues at Play? Summary: The oldest US department store operator, Lord & Taylor, filed for Chapter 11 bankruptcy in early August and announced it would be liquidating all 38 of its stores. A pedestrian walks past a permanently closed Jos. U.S. teen fashion retailer Rue21 Inc filed for Chapter 11 protection on Monday in the Western District of Pennsylvania bankruptcy court.The retail chain, which sells budget-priced clothing and accessories at over 1,100 stores across the United States, listed assets and liabilities in the range of $1 billion and $10 billion, according to the court filing. NOW: According to Loehmann’s, the company “is back, and here to stay.” It operates exclusively online. The Canadian company beat out other reportedly interested parties, such as Forever 21 and Amazon. With brands that include Aravon, Dunham and Rockport, the group says it will maintain operations through the sale process to stalking horse bidder Charlesbank. In the UK, its three remaining standalone stores are in Westfield London, Great Marlborough Street and Jermyn Street. Numerous clothing retailers such as Charlotte Russe, Diesel, A'Gaci and Forever 21 filed for bankruptcy this year. In a statement this week, the company’s CEO David DeFeo said, “J.Hilburn has a loyal client base. In fiscal 2015, the Tommy Hilfiger brand accounted for 43.5% of PVH’s total revenue and 44% of its operating profit. The Philadelphia-based operator of Deb Shops filed for bankruptcy in December 2014, blaming a shortage of capital. Off-price retailer Stein Mart filed for Chapter 11 bankruptcy protection in a bankruptcy court in Jacksonville, Florida on August 12. Within months of filing for bankruptcy, the brand, which was popular among skater-types, closed all 1,500 its locations, making it one of the largest retail bankruptcies in history. 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. Saddled with a $76 million debt, Yamamoto filed for bankruptcy protection in Japan. Plus-sized clothing retailer Avenue Stores filed for Chapter 11 in August, closing all … actively policing unauthorized uses of its intellectual property. Ahead of the bankruptcy filing, J.Crew had filed to take the Madewell brand public.”. The new owners closed two cheaper but profitable lines, Jeans and Bazar, and raised prices for ready-to-wear. That loan must be approved by the judge in the case. A closing sale is underway including some fixtures, and clothing markdowns of 40-60%. But Lacroix never had a hit perfume or an “it” bag. 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. In a Chapter 11 bankruptcy filing on Monday, Claire’s said it will reduce its debt by $1.9 billion. NOW: Online retailer Boohoo.com purchased Nasty Gal for $20 million as a stalking horse bidder. Moreover, if recent reports are accurate, Hudson’s Bay – the owner of Saks Fifth Avenue, Lord & Taylor, Gilt Groupe, and other retailers – is said to be in discussions to buy Macy’s. Founded in 2007 by former Forever 21 executives Jai Rhee and Bennett Koo, Love Culture launched as a brand aimed at women in the 18-to-35 age range. WWD reported at the time that NexCen – the owner of Bill Blass – was suffering so significantly that it planned to sell the furniture in the Bill Blass showroom. 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. It had previously filed … While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully. Styles for Less filed for Chapter 11 bankruptcy, hoping to avoid the rapidly expanding graveyard of mall retailers as the internet wreaks havoc. It also sells via Macy’s, Dillard’s, and other similarly situated retailers. Banks stores, along with K&G Fashion Superstore and Moores Clothing for Men, during the reorganization. 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. Keeping true to their original design (minus the massive back pockets), they’re just as voluminous as you remember,” per The Cut blog. According to a statement from the company upon filing for bankruptcy, Ashley Stewart began suffering financially in 2012 due to a decline in revenue and profitability. 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. The nearly 200-year-old retailer was acquired by Hudson’s Bay Company in 2012 and then sold to clothing rental subscription service Le Tote for a paltry $75M in 2019. Nonetheless, as of the Spring 2017 season, the brand will begin selling again, revived almost two years after the death of its founder, Elio. Nike relaunched the brand’s footwear of choice and “Chucks” quickly became a cultural phenomenon once again. After an emergency stock swap plan intended to save the company from bankruptcy failed to find sufficient backing among investors, the company filed for bankruptcy. Annual revenue: $12.02 billion in 2019. corporations had turned increasingly casual, and fewer men were buying suits,” which was heightened “once people started sheltering at home, they turned to even more casual attire such as sweatpants.”. 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. 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. 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. *This list was first published in December 2016 and has been routinely updated since then. … 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. This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail November 2016 – American Apparel (Round 2). “But without that funding, we couldn’t move forward. LVMH’s plan was to create a fashion house which would sell products from haute couture to handbags and perfume. 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. In July 2003, Nike paid $309 million to acquire Converse. NOW: Cache ended all business operations and closed all stores. Now, we’re ready to power forward.”. NOW: Betsey Johnson currently maintains its own e-commerce site, where it sells garments, accessories, and home goods. The bulk of the loss was a result of costs associated with the massive reorganization proceedings, including store closings. The company says it has lined up a “stalking horse” bid, and has a letter of intent from TerraMar Capital LLC, an investment firm that provides debt and equity capital to middle-market businesses. The Italian design house filed for administration in early 2009 in what Italian Industry Minister Claudio Scajola called a move aimed “to safeguard the group and its ability to continue in business.” In 2002, Tonino Perna’s IT Holding purchased 90% of the company, while Ferré, himself, retained the position of artistic director until he died in 2007. But it didn’t, because I wasn’t paying attention to the ‘business’ part of the business … I forced myself to learn the nuts and bolts of the business, and not solely on the creative side. The 13-year old company, which was founded by former equity research analyst Hil Davis and M&A analyst Veeral Rathod, attracted venture investment, as much as $13.8 million in 2012, after raising $12.25 million in rounds between 2008 and 2011, the majority of which came from Boston-based Battery Ventures. 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. “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. NOW: Still standing, the brand currently sells on Amazon and its own e-commerce site. Denim-maker Lucky Brand filed for Chapter 11 bankruptcy protection, with the brand revealing that it has entered into “a stalking horse asset purchase agreement with [Authentic Brands Group’s] SPARC Group LLC,” the operator of Aéropostale and Nautica, according to a release on July 3. “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. Here is a closer look at the major retail bankruptcies of 2020 so far. Private equity firm Versa acquired the Wet Seal brand in April 2015, announcing that it would maintain its headquarters and continue operating its 173 stores and growing its online platform. 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. Per WWD, “they did not include the company’s two Los Angeles area store leases.”. New York-based brand J.Mendel, which has been in and out of court over the past year battling over outstanding bills, filed for Chapter 11 protection in U.S. bankruptcy court in New York. We rely on readers like you to uphold a free press. It amassed crippling debt as it recorded losses each year since 2008. [Note: A company in “administration” is either about to become insolvent, or is already insolvent (i.e. In the first of three round of bankruptcy proceedings, Loehmann’s – a chain of off-price department stores in the United States – filed for Chapter 11 reorganization in 1999, emerging in 2000 after closing 25 stores. 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. According to Chron.com, “The company said it planned to lure back customers by offering more affordable dresses in a wider assortment of sizes, both in-store and online. “Payless had too much debt, too many stores, and too much corporate overhead when it emerged from the earlier bankruptcy,” according to Stephen Marotta, who was named as the company’s chief restructuring officer to prepare for the bankruptcy, according to CNN. Macy’s also was hurt by the weak economy, and disasters in two areas where it has a strong presence: Florida, hit by Hurricane Andrew, and Los Angeles, stung by riots. In furtherance of a restructuring support agreement, the group said in a statement that it expects to “significantly reduce [its] debt by approximately $1 billion and provide increased financial flexibility to enable the Company to continue its focus on generating profitable growth and driving value for customers and stakeholders.”, Reflecting on the bankruptcy filing, CNBC reports that “with thousands of bricks-and-mortar stores, at its heyday, Ascena was once the biggest clothing retailer for women in the country, having amassed a portfolio of well-known brands for various sizes and age groups. As reported by CNBC, the company said that it is “evaluating potentially selling its e-commerce operations and related intellectual property in bankruptcy proceedings.”. 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. Immediately prior, Wet Seal announced that it was closing about 338 stores, or two-thirds of its total. Footwear group Rockport has filed for Chapter 11 protection. 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. Bank clothing store in August in San Francisco. In connection with Thursday’s filing in a U.S. Bankruptcy Court in Houston, Texas, Neiman Marcus says that it is aiming to eliminate $4 billion of its more-than-$5 billion in debt. It has since asked the Delaware bankruptcy court to approve an auction for its intellectual property, including its name and assets connected to its website. According to the Guardian, reps for the brand say they hope to find a buyer to save the business, which was founded by Gallagher in 2009. The company also owned Filene's Basement, which it acquired in June 2009.. At its height, the company and its subsidiary collectively … 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. The company also said that it anticipates that stores will reopen when it’s safe to do so, however, Canadian … 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. Christopher & Banks is a specialty women’s clothing store. The brand, which no longer stages runway shows or sells runway garments, sustains itself through the sale of Christian Lacroix branded home goods. “Deb’s recent performance has been strained due to a combination of factors, including historic lack of capital invested in business resulting in old, tired stores with unfavorable mall traffic trends and general weakness in the competitive juniors’ space,” Chief Executive Officer Dawn Robertson said in court papers. retailers have filed for bankruptcy in 2020 so far: Select a retailer to learn more about their bankruptcy. Anaheim, Calif.-based Styles cited a range of $10 million to $50 million in assets and the same range of liabilities. New York-headquartered fashion company John Varvatos announced on May 6 that it has reached agreements with an affiliate of Lion Capital LLP, an existing investor, under which the company will sell its business to Lion “in order to ensure the business’s long-term success.” To facilitate this transaction, John Varvatos Enterprises and certain of its affiliates filed voluntary petitions for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. 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. Bank clothing store in August in San Francisco. American Apparel filed for its second bankruptcy protection in just over a year, former employees, who have all cited various forms of discrimination. 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. Carven and its parent company, Société Béranger, have filed a voluntary petition with the Commercial Court in Paris in a preceding that mirrors Chapter 11 bankruptcy, in order to remain in business, while it reorganizes and establishes a plan to pay off its creditors. 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. Rockport was founded in 1971 as The Rockport Co. and eventually became part of Adidas before being sold again. “Balenciaga designer Demna Gvasalia decided to tackle JNCOs. Le Tote acquired Lord & Taylor from Saks Fifth Avenue owner Hudson’s Bay Co. for $71 million last year, “taking over its 38 locations and hoping to propel the venerable department store toward new, younger shoppers,” per NPR. At the same time, the AP noted on Monday that competition faced by the 18-year-old, London-headquartered group has increased in the form of “low-cost rivals like Primark, as well as from online disrupters such as ASOS and Boohoo,” and that 68-year-old chairman Phillip Green has “not invested enough in the businesses to get them in shape to deal with the new competition in retail.”. BCBG owes lenders about $459 million. We are saddened to say that we now have to close our doors after 65 years.”. NOW: The yoga company has closed all of its stores except one, which is located in San Diego. It is no secret that the retail industry has experienced rapid and significant change over the last several years. While the revamp has not yet caught on, the JNCO jeans style – the long, massively baggy denim – is making its way onto the runway. On the heels of reports that J. NOW: Tamara Mellon relaunched her brand in Los Angeles in mid-2016, selling shoes and handbags exclusively on her own site. Already in a slump, the Covid-19 crisis pushed it over the edge.”, New York & Co. owner RTW Retailwindb announced on July 13 that it had filed for Chapter 11 bankruptcy with plans to permanently close most, if not all, of its 400 domestic brick-and-mortar outposts. 2 in the last six years of Duty Free Americas, a retail chain garments,,... The Brands and retailers that have closed stores or filed for Chapter 11 protection experts at its in... The Italian fashion Group Roberto Cavalli to real estate developer Damac in July 2003 Nike... U.S., including in Latin America, remain in operation been routinely updated since then mall based,... Major apparel stores, triggered by the judge in the Fray J.C. 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