The 48-year-old launched her eponymous accessories label in 2013 after co-founding luxury shoe label Jimmy Choo. According to USA Today, “The company said it was obtaining $25 million in financing from its existing lender, Tiger Finance, to facilitate the sales process, subject to court approval,” which will allow the company to address lease obligations and “seek a new investor that can see Francesca’s into the future.”. The expansion took “a heavy financial toll” and significantly increased operating expenses, court papers stated. retailers have filed for bankruptcy in 2020 so far: Select a retailer to learn more about their bankruptcy. J.C. Penney. The Pennsylvania-based company confirmed that it has successfully completed its financial restructuring without closing any of its 300 stores. I had started with nothing and worked so hard, and we were so close to making it really big, but I had taken my eye off the ball. NOW: Betsey Johnson currently maintains its own e-commerce site, where it sells garments, accessories, and home goods. NOW: Online retailer Boohoo.com purchased Nasty Gal for $20 million as a stalking horse bidder. NOW: Aquascutum was acquired by a Chinese consortium in 2016 for $120 million. The privately held California-based company, which maintains a network of 80 brick-and-mortar stores and about 1,300 employees, said in its filing that its financial difficulties came from competition from e-commerce and a poorly timed expansion, according to the Wall Street Journal. Next steps for preserving the well-known Cache brand are being explored under new ownership.”. 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 Sourcing Journal, the Los Angeles-based retail company filed for Chapter 11 bankruptcy on Friday, citing financial woes from the coronavirus crisis. The company also owned Filene's Basement, which it acquired in June 2009.. At its height, the company and its subsidiary collectively … Here is a look at some of the most recent fashion-related filings, as well as some significant ones dating back a bit further. The American arm of Italian apparel brand Diesel filed for Chapter 11 bankruptcy protection from creditors. Parent company Limited Stores LLC has agreed to a “stalking horse” bid for its intellectual property and some related assets from an affiliate of private equity firm Sycamore Partners. 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. In January 2021, Christopher & Banks filed for Chapter 11 bankruptcy protection and will permanently close all of its store locations. Numerous clothing retailers such as Charlotte Russe, Diesel, A'Gaci and Forever 21 filed for bankruptcy this year. True Religion Apparel. 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. As reported by CNBC, the company said that it is “evaluating potentially selling its e-commerce operations and related intellectual property in bankruptcy proceedings.”. Designer Diane Von Furstenberg’s British business has entered into administration (the British equivalent to U.S. Chapter 11 bankruptcy proceedings), citing mounting losses and “substantial doubt” as to the status of its subsidiary. According to Reuters, the 107-year old U.S. department store chain, which is “known for selling family apparel, cosmetics and jewelry at some 850 locations across the U.S., said it reached an agreement with existing lenders for $900 million of debtor-in-possession financing to aid operations while it navigates bankruptcy proceedings in federal court in Corpus Christi, Texas.” The retailer, which revealed in its filing that it has approximately $500 million in cash on hand, said it has commitments for $900 million in financing from its existing first lien lenders to fund bankruptcy. 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. Bank clothing store in August in San Francisco. It also suffered through a dramatic slump in the athletic footwear market worldwide in 1998 and 1999. Retail Woes: A Running List of Fashion & Retail Bankruptcies NOW: After thriving for years, Macy’s, the largest department-store company in the U.S., has cut its earnings outlook, vowed to eliminate 10,000 jobs, or about 4 percent of its workforce, and close over 60 stores before the spring. In fiscal 2015, the Tommy Hilfiger brand accounted for 43.5% of PVH’s total revenue and 44% of its operating profit. NOW: The brand – sans Ms. Farhi – maintains stores in London and sells through Harvey Nichols and its own e-commerce site. She filed for Chapter 11 in December 2015. I figured out how to control expenses and figured out a way to build a business on a shoestring budget.”. 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. All 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. After months of growing speculation, Forever 21 filed for Chapter 11 bankruptcy protection on September 29. 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. 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. Her designs were stocked at Net-a-Porter.com and included ready-to-wear pieces as well as shoes and handbags. I believed that the business would just continue to do well. New York-based athletic apparel firm Yogasmoga filed for Chapter 11 in a bankruptcy court in Manhattan, following an involuntary Chapter 7 bankruptcy in November. True Religion filed for Chapter 11 bankruptcy protection on April 13. Here is a closer look at the major retail bankruptcies of 2020 so far. for an undisclosed amount. 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. The Moores Clothing for Men at Uptown Centre will remain open as the company declares bankruptcy. 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. 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. 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. Discount apparel retailer Loehmann’s sought bankruptcy protection after its Dubai government-linked owner failed to reach a debt-extension deal with creditors. A. The parent company of Ann Taylor, Loft, Lane Bryant and other clothing brands is joining the parade of apparel retailers to file for bankruptcy … Per Forbes, “after 22 years of bucking trends and ignoring the bottom line, Christian Lacroix filed for the equivalent of Chapter 11 bankruptcy protection in France.”. I was devastated. “Unlike many retailers who have filed for bankruptcy, Perfumania sees a viable path forward,” Chief Executive Michael Katz said in court papers filed Saturday. 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. The new owners closed two cheaper but profitable lines, Jeans and Bazar, and raised prices for ready-to-wear. 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. Now, we’re ready to power forward.”. 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. Are Christopher and Banks stores closing? Clothing store sales plummeted more than 50% in March, according to Commerce Department data, and it has grown worse since. Discount shoe retailer Payless filed for bankruptcy twice — and the second time was fatal. Anaheim, Calif.-based Styles cited a range of $10 million to $50 million in assets and the same range of liabilities. “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. 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. 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. Syms Corp (styled as SYMS) was an off-price retail clothing store chain, founded by Sy Syms in 1958. In a statement, Stein Mart CEO Hunt Hawkins said, “The combined effects of a challenging retail environment coupled with the impact of the COVID-19 pandemic have caused significant financial distress on our business.”. 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. The previous year, Frederick’s was taken private for about $24.8 million by investors led by a unit of New York-based Harbinger Group Inc. – at the time of the deal, Frederick’s had 94 women’s clothing stores; at its height it had more than 200. 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. … Dubai-based Damac has acquired 100 percent of Roberto Cavalli SpA. The company had 82 brick-and-mortar stores stretching from Massachusetts to Hawaii at the time of filing for bankruptcy. J.C. Penney Co. filed for bankruptcy protection on May 15, revealing plans to permanently close some stores and explore a potential sale. Founded: 1826. Fashion jewelry chain Charming Charlie filed for Chapter 11 bankruptcy and entered into a restructuring agreement with lenders and equity sponsors. 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.’”. Denim clothing store True Religion, which emerged from bankruptcy in the fall after closing dozens of locations. Plus-sized clothing retailer Avenue Stores filed for Chapter 11 in August, closing all … We have made many difficult decisions to preserve the Company’s viability during these unprecedented times. This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail We are saddened to say that we now have to close our doors after 65 years.”. CEO Celia Clancy said in a statement, “Unfortunately, our efforts to find a strategic partner to help save the business were not successful. “While insurance money helped us to rebuild after suffering the devastating impact of 9/11, we now have no viable alternative but to begin the closure of our beloved family business because our insurers, to whom we have paid significant premiums every year for protection against unforeseen circumstances like we are experiencing today, have turned their backs on us at this most critical time,” the retailer’s co-CEO, Raymond Gindi, said in a statement on September 10. 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. “The brand and product is still connecting very strongly with the consumer, so we are shrinking our footprint to online and taking Yogasmoga forward with a smaller footprint online and through the La Jolla store,” the company’s founder, Rishi Bali, said in an email. 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. 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 Philadelphia-based operator of Deb Shops filed for bankruptcy in December 2014, blaming a shortage of capital. 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). 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. J.Crew has a $400 million exit term loan from Anchorage, GSO Capital Partners LP and others due 2027, and a $400 million asset-based lending credit facility due 2025 from Bank of America NA. 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. Avenue. Nasty Gal has had a rough couple of years: It cut jobs in both 2015 and 2016, and founder Sophia Amoruso ceded the role of CEO at the beginning of 2016. Fubu creator Daymond John, who acquired Heatherette in the mid-2000’s when it was in its heyday of showing during New York Fashion Week and garnering fans like Paris Hilton, said that despite injecting upwards of $6 million in the company, he and the label’s founders, Traver Rains and Richie Rich, could not make it work. American Apparel filed for its first round of bankruptcy in the fall of 2015, after announcing in August that it might not have enough capital to sustain operations for 12 months. NOW: Canadian apparel maker Gildan Activewear won a bankruptcy auction to buy American Apparel’s manufacturing equipment and intellectual property rights for $88 million in cash. According to the brand’s site: “Under previous ownership, Cache went out of business and closed all stores. Despite its pure-digital start, Yogasmoga soon took its yoga clothing to two brick-and-mortar stores in 2015, upping up its physical network in ten shops during the past twelve months. The company cited assets and liabilities at between $1 billion and $10 billion, and revealed that it had reached a deal with its lenders to convert about $1.65 billion of debt into equity. We believe in our stylists, in the growth potential of the men’s custom market, and in the ability of our management team to lead the company to future success.”. NOW: Yohji Yamamoto regularly shows during Paris Fashion Week, with stockists including FarFetch, Lyst, and FWRD, and brick-and-mortar stores worldwide. The company emerged from the first bankruptcy in the summer of … Update (June 11, 2018): Authentic Brands Group LLC, which owns Juicy Couture, Judith Leiber, Herve Leger, and Nautical, among other brands, has reportedly won the auction for the intellectual property of bankrupt U.S. shoe and accessories company Nine West Holdings Inc with a revised bid of about $350 million. Below you’ll find a list of all the brands and retailers that have closed stores or filed for bankruptcy in 2019. NOW: PacSun restructured and emerged from bankruptcy in September, under new ownership of Golden Gate Capital. NOW: The German label – under the creative direction of Daniel Wingate – recently released its Pre-Fall 2017 collection. Its first filing came in 1996, after a squabble with its Japanese owner, department store company Isetan. NOW: As of September 10, 2020, J. 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