Sequential Brands Group Inc., the parent company of brands including the Jessica Simpson fashion collection and Joe’s Jeans, filed for bankruptcy protection after the apparel industry was upended by changing consumer habits and the coronavirus pandemic.
The owner and licensor of brands such as Gaiam yoga filed its Chapter 11 petition in Delaware.
Retailers across the country have struggled with plunging revenues as Covid-19 precautions led to temporary shutdowns of physical stores and kept consumers at home. J. Crew Group Inc., Neiman Marcus Group LLC and J.C. Penney each filed for bankruptcy earlier in the pandemic.
Many retailers that carry Sequential’s brands were closed for part of last year, denting revenues. In late 2020, the company said it was considering a sale as part of a broad “exploration of strategic alternatives” in an effort to maximize shareholder value. The company unloaded its Heelys sneaker brand in April for $11 million.
In December, the Securities and Exchange Commission charged Sequential with violating antifraud, reporting, books and records and internal controls provisions of federal securities laws related to goodwill accounting in 2016 and 2017.
By Katherine Doherty.
Filing for Chapter 11 looks different now. Here’s what retailers and their partners need to know.