RusBankrot
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24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
THE OWNER OF JESSICA SIMPSON BRAND DECLARES BANKRUPTCY
Sequential Brands Group, a North American fashion brand, has filed a lawsuit in Delaware to protect itself from bankruptcy. The reason was the coronavirus pandemic, which led to a fundamental change in consumer habits, a decline in retail and a reorientation to internet marketing. All the mentioned factors negatively affected the state of the garment industry.
Sequential Brands Group is the parent company of the yoga brand Gaiam. Sequential Brands is the owner and licensor of the Jessica Simpson’s fashion collection and the Joe's Jeans brand. One of the largest owners of Sequential Brands with 11% of shares is Martha Stewart Family Ltd., associated with the name of the American TV presenter and writer Martha Stewart.
After the organization had filed an application, the value of its shares fell by 62% to $ 4.59 per share, which caused a halt in trading.
Experts note that over the past year, many retailers that sold products of brands owned by Sequential Brands have closed. Back in late 2020, the company stated that it was considering selling the business as a possible ‘strategic alternative’ if it would increase the value of the securities. In April 2021, the company sold the famous brand Heelys, which produced sneakers with inserted wheels for $ 11 million.
We should recall that the problem of falling income in the retail sector of the US market is quite acute. The precautionary measures taken in response to the spread of Covid-19 have led to the temporary shutdown of many stores, while their potential buyers stayed at home. As a result, well-known companies such as J. Crew Group Inc., Neiman Marcus Group LLC and J.C. Penney declared bankruptcy.
Sequential Brands Group is the parent company of the yoga brand Gaiam. Sequential Brands is the owner and licensor of the Jessica Simpson’s fashion collection and the Joe's Jeans brand. One of the largest owners of Sequential Brands with 11% of shares is Martha Stewart Family Ltd., associated with the name of the American TV presenter and writer Martha Stewart.
In a claim, the company indicated that its debts are $ 435 million and the assets are estimated at $ 443 million.
At the same time, Sequential Brands received a loan of $ 150 million in order to reorganize its financial base. Now this loan must be approved by the bankruptcy court.After the organization had filed an application, the value of its shares fell by 62% to $ 4.59 per share, which caused a halt in trading.
Experts note that over the past year, many retailers that sold products of brands owned by Sequential Brands have closed. Back in late 2020, the company stated that it was considering selling the business as a possible ‘strategic alternative’ if it would increase the value of the securities. In April 2021, the company sold the famous brand Heelys, which produced sneakers with inserted wheels for $ 11 million.
Last December, the company was charged with violating the securities act of the USA.
The state commission found that Sequential Brands violated accounting rules and internal control provisions related to goodwill accounting for 2016-2017.We should recall that the problem of falling income in the retail sector of the US market is quite acute. The precautionary measures taken in response to the spread of Covid-19 have led to the temporary shutdown of many stores, while their potential buyers stayed at home. As a result, well-known companies such as J. Crew Group Inc., Neiman Marcus Group LLC and J.C. Penney declared bankruptcy.
02.09.2021
