Global Brands Group’s American arm has filed for Chapter 11 bankruptcy!
The Hong Kong-based clothing manufacturer and brand owner has, reportedly, said that it also plans to sell its integral assets. Global Brands Group has a US $ 17.3 million stalking horse bid for its Aquatalia brand.
As per media reports, Global Brands Group’s US arm is aiming at selling a significant portion of its remaining assets in Chapter 11, which includes Airband, Ely & Walker, Yarrow, MagnaReady and B New York, amongst others.
The move to file for Chapter 11 follows retailer’s sale of assets and inventory related to the Frye and Spyder brands. Here it is important to state that the brand’s owner, Authentic Brands, recently reassigned those licenses to new operating partners amidst Global Brands Group’s struggles.
Chapter 11 filing was expected, as Global Brands Group’s apparel sales were hugely impacted all through the pandemic-hit year.
The results were there to be seen as Global Brands Group’s US sales dipped by 44 per cent in the year that ended March 2021.
Also, there have been reports that some of its suppliers have even demanded cash on delivery and also tightened terms, adding to the retailer’s financial worries.
Notably, Global Brands Group also owes royalty money to Kenneth Cole (US $ 6 million), Sequential Brands (US $ 2 million) and Marquee Brands (US $ 860,000).
Global Brands Group is an apparel, footwear and brand management company, which designs, develops, markets and sells products under a diverse array of owned and licensed brands and a wide range of product categories.
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