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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