The Collected Group, the US retailer and distributor of fashion brands such as Current/Elliott and Joie, filed for Chapter 11 bankruptcy earlier this week.
Expectedly, the Group attributed the bankruptcy filing to prolonged sales decline and liquidity issues – all owing to pandemic menace.
The Group filed for bankruptcy with a pre-packaged plan that would turn over equity to certain secured lenders.
Moreover, the Group, as per media reports, has also said that it now aims to close down its physical stores so as to focus on its online and wholesale business.
Back in 2020, The Collected Group saw its retail revenue slump by massive 85 per cent and wholesale revenue go down by 70 per cent. The e-commerce business, however, grew by 37 per cent during the year.
Frequent store closures worsened the situation and even the talks with landlords for new terms worked out only in few cases.
This is one of the reasons that The Collected Group is now not keen to run its physical stores.
And now in bankruptcy, it plans to reduce secured debt to US $ 30 million from over US $ 185 million. With this, the Group hopes to save jobs and vendor relationships.
Founded in 2001, The Collected Group is known for its high-end trendy apparels.