Sequential Brands Group, Inc. has filed for Chapter 11 bankruptcy protection.
The company, which owns the Jessica Simpson, Joe’s Jeans, And1, Avia and more brands, said in a press release that “significant debt on its corporate balance sheet” made it no longer able to operate its portfolio.
Sequential struggled through debt and multiple executive shuffles in recent years. CEO David Conn resigned in October of 2020. In March of 2021, four board members resigned after Sequential gave one of its lenders, Wilmington Trust, the right to appoint a majority of Sequential Brands’ board. Martha Stewart, whose brand was sold to Marquee Brands in 2019, was one of the members to step down.
Sequential is looking to sell all or most of its assets and is seeking approval for an auction and bidding process that will enable interested buyers to bid on its assets.
According to financial documents, the company had an outstanding net debt of $452.3 million as of December 31, 2020. To pay back lenders, the company sold some of its brands this year. Earlier this this month, Sequential sold the Ellen Tracy and Caribbean Joe Island Supply Co. brands to the GMA Group for a total of $20 million. It also sold its Heeling Sports brand BBC International for $11 million in April.