Executives at Centric Brands, a key manufacturer for the likes of Calvin Klein and Tommy Hilfiger, have filed for bankruptcy protection.Based in New York City, the lifestyle brand collective designs, sources, markets, and sells fashion products across …
Executives at Centric Brands, a key manufacturer for the likes of Calvin Klein and Tommy Hilfiger, have filed for bankruptcy protection.
Based in New York City, the lifestyle brand collective designs, sources, markets, and sells fashion products across multiple markets, with the company’s portfolio also making items for licensed brands such as Nautica, Spyder, Under Armour, Joe’s Jeans, Hudson Jeans, Kate Spade, Michael Kors, Timberland, and Jessica Simpson. It also owns the rights to Zac Posen’s label.
However, bosses at Centric Brands announced on Monday that they have voluntarily filed for protection under Chapter 11 amid the coronavirus crisis.
According to the U.S. Bankruptcy Code, a Chapter 11 filing permits reorganisation under the bankruptcy laws.
“The current crisis has significantly impacted companies across all sectors. The pandemic disrupted many of our wholesale accounts’ ordering and constrained our cash flow. However, we are confident that with added flexibility in our capital structure, we will be well-positioned for long-term success during this period and beyond,” said Jason Rabin, chief executive officer of Centric Brands, in a statement. “We thoroughly evaluated all possible strategic options to address this environment. After extensive review, we determined that partnering with our current lenders to pursue this path will result in a stronger financial position and more resources to support future growth, while allowing us to focus on serving key stakeholders.”
The team at Centric Brands intends to continue operating as usual amid the restructure process and expects to emerge as a private company with the support of existing stakeholders.
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Zac Posen’s brand has been purchased by executives at Centric Brands. In November, the fashion designer announced he was abruptly shutting down his eponymous label, which he founded in 2001, after a sale fell through at the last minute. He revealed he…
Zac Posen’s brand has been purchased by executives at Centric Brands.
In November, the fashion designer announced he was abruptly shutting down his eponymous label, which he founded in 2001, after a sale fell through at the last minute. He revealed he had been in discussions with several potential buyers or investors and none came to fruition.
On Thursday, representatives for Centric Brands announced they had purchased the Zac Posen brand and all related property held by Posen’s business Z Spoke. As part of the deal, Centric executives have acquired all existing licenses and collaboration agreements and won’t be assuming any liabilities associated with the previous business. The value of the deal was not disclosed.
Posen, 39, will serve as a strategic adviser on matters relating to creative direction, marketing, and promotion of the branded business.
“I am so pleased that Centric Brands is committed to the Zac Posen brand and to building a new and relevant Zac Posen branded world,” said Posen, according to WWD. “I am looking forward to helping Jason (Rabin, chief executive officer of Centric) and the team continue to identify and execute on strategic licensing opportunities and selectively build the brand’s global distribution and omnichannel marketing strategy.
“Along with my role as strategic advisor to Centric Brands, I am looking forward to engaging in other projects, both in and outside of fashion, that have long intrigued me. It’s a very exciting time.”
Rabin added in a statement, “Zac is a talented and charismatic designer. The Zac Posen label is synonymous with exceptional craftsmanship and modern American glamour and is a red-carpet favourite among many of the world’s most famous celebrities. This acquisition adds a global, marquee designer brand to our portfolio of ready-to-wear women’s apparel and provides a platform to expand into new licensing categories, while supporting one of our strategies for growth.”
Centric’s portfolio includes labels such as Herve Leger, BCBG MaxAzria, and Hudson Jeans.
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