Sequential Brands Group Files for Chapter 11 Bankruptcy
Sequential Brands Group, Inc. has filed for Chapter 11 bankruptcy protection, reports Footwear News. The company, which owns 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 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. The company has secured $150 million in debtor-in-possession financing from existing term lenders to fund its operations through the Chapter 11 process.
Total Retail's Take: Sequential Brands has been in turmoil for more than a year, struggling through multiple executive resignations and selling off brand assets such as Ellen Tracy, Caribbean Joe, and Heeling Sports for far less than the retailer paid to purchase them. The company was still unable to stabilize its financial position and was weighed down by an outstanding net debt of over $450 million. According to a press release, Sequential "believes that each of its brands is well-positioned for profitability under the stewardship of new owners."
On filing for bankruptcy, Sequential landed a stalking horse bid from Galaxy Universal for its Active Division assets, as well as from Centric Brands for the Joe's Jeans brand. Unfortunately, Sequential joins the list of retailers pushed into bankruptcy. As the parent company dissolves, one can only hope the individual brands can be revived by new ownership.
Kristina Stidham is the digital content director at Women in Retail Leadership Circle and sister brand Total Retail. She is passionate about digital media and handles video, podcast and virtual event production for both brands. You can often find her at WIRLC, TR, or industry events with her camera and podcasting equipment recording interviews with retailers.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her two pet guinea pigs, and travel to new places.