LOS ANGELES — Judge Ernest Robles converted former XOXO licensee Grupo Xtra of New York Inc.’s Chapter 11 bankruptcy reorganization to a Chapter 7 liquidation in federal bankruptcy court here Tuesday.
This story first appeared in the June 27, 2002 issue of WWD. Subscribe Today.
Referring to wide-ranging allegations of improper conduct being hurled by both parties, Judge Robles said his court was “not in a position to resolve” those issues. A Chapter 7 trustee will take over management and possession of Grupo Xtra’s remaining assets and distribute the proceeds to creditors. The largest secured creditor, CIT Commercial Services, has already taken possession of the inventory.
The Chapter 7 conversion came a day after Judge Robles denied Grupo Xtra’s emergency motion for a temporary restraining order that would have frozen a license termination agreement reached in court on April 25.
On that date, both parties reached an agreement stipulating that Grupo Xtra would cease using the five Aris trademarks, turn inventory over to CIT Commercial Services and vacate a Commerce, Calif., facility owned by Aris Industries. The agreement was read into the court record, becoming Judge Robles’ order.
The five licenses — including Fragile jeanswear and sportswear, XOXO sportswear, Baby Phat sportswear, Members Only sportswear and outerwear, and Brooks Bros. golf apparel — are now held by a new company, Adamson Apparel Inc., of which Arnold Simon is the principal owner. Simon is president of Aris, the previous licensor of XOXO.”