The North American arm of Global Brands Group (GBG) has filed for Chapter 11 bankruptcy. The news was reported by WWD.
In a court filing in the New York Southern District bankruptcy court on Thursday, GBG USA Inc. disclosed 1 billion and 10 billion dollars in assets and liabilities, and listed between 1000 to 5000 creditors. They currently owe top creditors large sums of money, including 6 million dollars to Kenneth Cole and 3.6 million to Authentic Brands Group.
Global Brands Group is hoping they’ll resume business as usual after their bankruptcy process and is planning to use the bankruptcy sales process to unload assets like inventory. The company is also hoping to sell off assets including Ely & Walker, Airband, MagnaReady, Yarrow, B New York, and Juniperunltd brands. GBG is also planning to sell its Aquatalia footwear brand, with Windsong Global LLC seen as a leading contender to purchase the brand.
Global Brands Group, like most fashion companies, was greatly impacted by the COVID-19 pandemic. Global political issues have also affected Global Brands Group’s supply chain.
In its financial filing, Global Brands Group revealed that they’ve lost 204 million dollars for the year ended in March 2021. This accounts for 92 percent of GBG’s operating losses.