Kitson, the boutique chain, which started the high-end shopping at Los Angeles’ Robertson Boulevard and pop-culture retailing is eventually going out of business, according to a statement released by the retailer’s public-relations representative.
The retailer is in the process of closing its 17 store locations and its e-commerce store.
Gordon Brothers Group and Hilco Merchant Resources, the liquidation specialists have been hired to direct closing down sales at all Kitson retail locations.
On Kitson’s e-commerce site, all items have been put on sale by the retailer on discounts starting from 30 per cent to 50 per cent.
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However, in a statement attributed to James Wong, Kitson’s Chief Restructuring Officer, the retailer is said to be in discussions with other retailers to find a way to preserve the brand.
The decision on the closure of the entire Kitson chain is a sudden and unexpected development, though this summer, Kitson received an investment, reportedly to avoid bankruptcy. One of the investors was Spencer Spirit Holdings Inc., through its affiliate BHK Investments LLC, agreed to participate as a lender to Kitson to provide greater liquidity for the company, according to Alecia Pulman, a public-relations representative who has worked on behalf of the company.
This closure has come in the wake of debt, which has been a major issue at Kitson for the past few years. In 2013, Kitson received a US $ 15 million credit line from Salus Capital Partners, headquartered in Boston. The financing was used to take care of debt and provide working capital for the company.
Kitson opened on Robertson Boulevard in 2000 and very soon gained popularity as a purchasing hub for the emerging high-end and casual brands. It soon became popular with celebrities too. Some of the brands sold at Kitson include True Religion, Wildfox Couture and Brian Lichtenberg. In the past few years, the stores have increasingly focused on high-end pop-culture gifts.
