The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Citigroup Inc wants a US judge to extend a freeze on about $504 million that it mistakenly sent a group of Revlon Inc lenders, while it appeals his decision that they can keep the money.
In a Tuesday night filing, Citigroup asked US District Judge Jesse Furman in Manhattan to convert his temporary freeze over the funds into a longer-lasting injunction.
Citigroup said giving the 10 lenders freedom to distribute the funds to their investors would make it “very difficult, if not impossible” to recoup the money even if it won its appeal.
Its Citibank unit had intended last August to make a small interest payment on Revlon’s behalf, but used its own money to repay the cosmetics company’s roughly $894 million loan in full.
ADVERTISEMENT
While about $390 million has been repaid, Furman ruled on Feb. 16 that the 10 lenders including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management need not repay the remainder.
Robert Loigman, a lawyer for the lenders, said in an email they would oppose an injunction, and called Citibank’s argument that it was likely to succeed on appeal “without basis.”
The lenders’ formal opposition is due on March 12.
Citigroup said Furman’s decision could make it too risky to perform wire transfers, the “basic building blocks” of the global financial system, and force loan agents to buy costly insurance against the risks of a “finders, keepers marketplace.”
Last week, Citigroup lowered its previously reported fourth-quarter profit to reflect Furman’s Feb. 16 decision, adding $390 million of expenses to cover losses “related to certain legal matters.”
By Jonathan Stempel; additional reporting by Imani Moise; editor: John Stonestreet
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.