Sequential Brands Group, the US-based firm, has, reportedly, filed for Chapter 11 bankruptcy protection.
The company said, in a statement released to media, that it was no longer able to run its portfolio of brands owing to its debt load.
The Group is now planning to sell most, if not all, of its assets through a court-supervised auction during bankruptcy.
Importantly, the company has secured US $ 150 million in debtor-in-possession financing from existing term lenders. This is expected to help the Group fund its operations all through the bankruptcy process.
Sequential Brands Group is one amongst those several brands that’s been hit by the pandemic. Besides, selling off assets to pay back lenders, the Group has consistently missed deadlines.
Also, the Group has time and again warned investors that it may struggle to survive as a going concern.
To make matters worse, when Wilmington Trust, one of its lenders, appointed a majority of Sequential Brands’ board recently, four of its board members resigned.
The company, earlier this month, sold the Ellen Tracy and Caribbean Joe brand assets for a combined value of US $ 20 million, which was around one-third of what it had paid for the brands back in 2013.
Sequential Brands Group is an American lifestyle retailer, which owns Jessica Simpson, Joe’s Jeans, And1, Avia and other brands.