The parent company of Hawaii-based fashion retailer Hilo Hattie has filed for bankruptcy protection for the second time in less than a decade. Currently, the Hawaiian retailer owes its creditors more than 10 million dollars.

Hawaii fashion and gift retailer Hilo Hattie has filed for Chapter 11 bankruptcy reorganization for the second time in less than seven years, and owes more than 10 million dollars to its top 20 unsecured creditors alone.

Hilo Hattie previously filed for bankruptcy in 2008, but emerged a year later under new ownership.

"We've adjusted every part of the business plan under our control to adapt to the rapidly changing dynamics of Hawaii's retail landscape," Hilo Hattie Executive Vice President Mark Storfer said in a statement.

"We have seen a slow but steady climb toward profitability as we've adjusted our positioning, product mix, and retail experience to meet shopper demand. But a key component of our plan was finding a retail footprint that fit today's market, and that has proven elusive."

Hilo Hattie parent Pomare Ltd. owes current owner Donald B.S. Kang 2.76 million dollars in unsecured loans and the Kang's other company, Royal Hawaiian Creations, 4.1 million dollars, according to court documents.

Storfer said in court Friday that the company has about 2.2 million dollars in inventory assets, and the value of the Nimitz leasehold is more than 4 million dollars, reported ‘BizJournal’. The Nimitz lease is now on the market for sale.

 

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