Friday, April 2, 2010
Rock & Republic and Bankruptcy Protection?
Rock & Republic, the fashion brand known for its pricey designer denim and other apparel, said Thursday that it had filed for Chapter 11 bankruptcy protection.
The Culver City company, whose products are sold in upscale department stores such as Bloomingdale's, Neiman Marcus and Nordstrom as well as specialty retailers and its own free-standing stores, said the filing would ease pressure on its balance sheet. Day-to-day operations are expected to continue. The label hasn't been the picture of financial health for months. It canceled its fall 2010 Fashion Week show and slashed distribution of its makeup line.
"The Chapter 11 filing is a strategic action that will alleviate balance sheet burdens and enable us to adopt the financial and operational initiatives needed to support the brand's growth needs," said Geoffrey D. Lurie, the privately held company's newly named chief restructuring officer. "We are confident that this is the right move for Rock & Republic."
Lurie added that the company was exploring "financial relationships" and would sharpen its focus to emphasize its core apparel and footwear businesses.
Rock & Republic was founded in 2002 by Chief Executive Michael Ball and has become known for its edgy and sexy clothing, including premium jeans priced at $200 or more.
The bankruptcy petition was filed in U.S. Bankruptcy Court in New York. The company said it had obtained a commitment for a line of credit from CIT Group/Commercial Services Inc.
By Andrea Chang of the L.A. Times