The company is planning to use the bankruptcy sales process to unload assets like inventory and some brands.
The North American arm of Global Brands Group has filed for Chapter 11 bankruptcy.
Global Brands Group’s European wholesale and brand management businesses are not part of the bankruptcy proceedings as they are separate legal entities.
In a court filing in the New York Southern District bankruptcy court on Thursday, GBG USA Inc. disclosed $1 billion and $10 billion in assets and liabilities, and listed between 1,000 to 5,000 creditors. It currently owes top creditors large sums of money, including $6 million to Kenneth Cole and $3.6 million to Authentic Brands Group, reported WWD.
The company is hoping to resume business as usual after its bankruptcy process. It is planning to use the bankruptcy sales process to unload assets such as inventory, while it is also hoping to sell off a number of brand assets including its Aquatalia footwear brand.
Like most fashion companies, Global Brands Group has been greatly impacted by the pandemic, as well as global political issues affecting its supply chain.
In its financial filing, Global Brands Group revealed it has lost $204 million for the year ended in March 2021. This accounts for 92% of GBG’s operating losses.
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