Global Brands Group (GBG) USA Inc. has filed for Chapter 11 bankruptcy protection.
In a Thursday filing in New York Southern District bankruptcy court, GBG USA listed between 1,000 to 5,000 creditors, WWD reported. These creditors include companies such as Kenneth Cole Productions Inc. and Authentic Brands Group, which has a portfolio of more than 30 brands — including Forever 21, Nine West, Eddie Bauer, Juicy Couture and more.
GBG USA operates footwear and apparel wholesale and direct-to-consumer business for the North American arm of Global Brands Group. Global Brands Group designs, develops, markets, and sells products under a portfolio of owned and licensed brands, including Fiorelli, Sean John, AllSaints, Navigare, Dirk Bikkembergs, Dimensione Danza, and more.
According to WWD, GBG USA owes Kenneth Cole around $6 million in unsecured trade debt. It also owes about $3.6 million to Authentic Brands Group. GBG USA has entered into an asset purchase agreement for the sale of its Aquatalia brand with WH AQ Holdings LLC as purchaser and Hilco Brands as guarantor. The stalking horse, or initial, bid prices the offer at $17.3 million.
The moves comes weeks after GBG USA sold its Frye and Spyder brands back to Authentic Brands Group.
“Over the past 18 months, the retail landscape has been greatly impacted by COVID-19, creating hardships for us and many others across our industry,” CEO of Global Brands Group Rick Darling said in a statement. “Our business has also been impacted by ongoing structural shifts in the retail industry, as well as persistent geopolitical tensions that have disrupted supply chains. These factors have been especially detrimental to GBG USA.”
GBG USA is looking to sell other assets as well, including Ely & Walker, AIRBAND, MagnaReady, Yarrow, b New York and JUNIPERunltd, according to a statement.