These 3 brands of beloved clothes have just filed bankruptcy
The parent company has experienced sales dramatically in the middle of the pandemic and will closing stores.
The Covid-19 pandemic has decimated brick and mortar sales in various sectors, but few retail environments have seen as many upheavals as the garment industry. According to a Deloitte report, clothing and saw accessory storesLosses of 89% Between February and 2020, while the consulting firm, McKinsey found that up to 75% of clothing retailers couldfind that their finances become unsustainable Due to the loss of revenue related to the pandemic. These are not just small businesses that go either. The parent company of several brands of popular clothing has announced its bankruptcy deposit due to losses related to Covid; Read it to find out which brands are on the cutting block. And for more shop closing stores,This popular channel closes up to 75 locations.
1 Three popular brands are affected by the deposit of bankruptcy.
On Monday, April 5, the group collected - the parent company of current clothing brands / Elliott, Jiict, and the material filed for bankruptcy, citing significant losses associated with the pandemic. The company, founded in 2001 and had 33 stores through the brands at its peak, got all its stores at the beginning of the pandemic. Three joy stores reopened at the end of 2020, who have all closed all closed. And for the latest retail news delivered directly to your inbox,Sign up for our daily newsletter!
2 The parent brand company has seen revenues of 85%.
InThe deposit of the bankruptcy of the group collected (Via ReTAW RetailDive), the company revealed that its revenues decreased by 85% in the midst of the closure of COVID-related stores and reduce foot traffic when reopening, leaving the company over $ 183 million debt funded and $ 35.5 million of unsecured debt. The company has since searched for a third party buyer, touching 212 potential buyers, but in vain. "These indications of interest reflect potential transaction values well below the amount of secure debt", "Evan Hengel, The chief restructuring officer of the group collected, explained in the deposit of the bankruptcy of the company.
3 All brick and mortar stores of society end.
As a means of offsetting the main losses involved in 2020, the group collected got all its brick and mortar stores through the brands. "The Company has determined that it was in its interest in transition from its company to focus exclusively on sales by its electronic commerce platform and wholesale chains. In the pursuit of this business strategy, the company has rendered All its shops to the owners "" Hengel explained. The applicant of bankruptcy also notes that the company has already closed its head office in Los Angeles and New York. And for more surprising detail changes that you can expect in a loved one. to come up,These popular products are about to disappear from the shelves, experts to warn.
4 The company will focus on electronic commerce and wholesale sales in the future.
Although the retail stores of the group collected are a thing of the past, the companies in its portfolio will live through electronic channels and wholesale chains. In addition to the websites of joy, current / elliott and equipment, the three brands will continue to sell goods through its 305 US and 272 overseas chains, which include department stores, digital retailers and Fashion rental services such as Bloomingdale, Harvey Nichols, Neiman Marcus, Net-A-Porte, Nordstrom, rent the track, turn and SAKS FIFTH Avenue. And for more stores that are not long for this world,This beloved store closes 65 locations.
