Sequential, a well-known American apparel company with star brand Jessica Simpson and sports brand AND1, has recently filed a bankruptcy protection application with the Delaware Bankruptcy Court, which has become another clothing company affected by the epidemic.
As early as the beginning of the pandemic, the company issued a notice on its official website suspending all operations until the COVID-19 epidemic improved, and also mentioned some difficult and uncertain moments.
After the news of the bankruptcy protection application, the company's stock price fell 57.57% on the Nasdaq, and its market value fell to less than $10 million.
Data shows that before the pandemic, sales of jessica Simpson, the company's largest brand, were as high as $1 billion.
According to court documents, the Sequential company, which owns many brands such as Jessica Simpson, Joe's Jeans, Gaiam, And1, Avia and William Rast, currently has $443 million in assets, and two partners, Galaxy Active and Central Brands, have become the bidders for the company's two asset auctions, including Galaxy Active participated in the auction of the company's sports business at a reserve price of $330 million, and agent Central Brands participated in the auction of the company's Joe's Jeans brand at a reserve price of $420 billion.
In addition, according to PR Newswire and Sohu related reports, the internal transactions disclosed by Sequential Company show that STEWART MARTHA, a shareholder holding more than 10% of the company's shares, sold a net of 180,800 shares on August 31, 2021. In fact, the bankruptcy of Sequential is not unexpected, the pandemic is just a catalyst.
During channel transformation over the past decade, people like J. Crew Group Inc., Neiman Marcus Group LLC and J.C. Penney Co. Several U.S. apparel and fashion department store giants have restructured in the industry reshuffle.
Coincidentally, in addition to Sequential, there were also established American clothing companies that filed for bankruptcy earlier. According to The New Wave Business Review, in July 2020, brooks Brothers brands also officially filed for bankruptcy.
Brooks Brothers is the oldest menswear luxury clothing brand in the United States, with a history of more than two hundred years. It has endured two wars and depressions, failed to overcome many disasters, and has grown up with generations of Americans.
So Brooks has long been considered one of the oldest and most prestigious retailers in the United States. Before bankruptcy, it operated more than 500 stores worldwide, about half of which were in the United States, employing more than 4,000 people.
From: Businessweek Chinese Edition