Daffy’s Inc. filed its Chapter 11 bankruptcy petition in a Manhattan federal court Wednesday night, stating that it expects to receive cash proceeds of at least $59 million from the sale of assets.
In a court document by Richard F. Kramer, Daffy’s vice president of finance and secretary, the cash proceeds will satisfy the $37 million in creditor claims. That means that secured and unsecured creditors will receive full payment on their claims, a rarity in bankruptcy cases when creditors typically get a return of just pennies on the dollar.
In the same document, Kramer said for the year ended Jan. 1, the retail chain posted a net operating loss of $11.4 million on net sales of $151.3 million.
Kramer attributed the decline in profitability to the “continued economic downturn and increased competition in the discount fashion market [that includes the rise of] online discount retailers.”
As part of the wind-down of operations, JEMB Realty has agreed to acquire Daffy’s leasehold interests, certain real estate fixtures and intellectual property. In addition, it is purchasing three real estate properties, although neither the dollar amount of the latter transaction nor its locations were disclosed. The proceeds from the two transactions will be used to satisfy creditor claims.
Among the unsecured trade creditors listed in the petition, Peerless Clothing International Inc. holds a claim for $267,753.55, while Timberland is owed $154,645.50. NY Accessory Group is owed $93,840.50, while The Echo Design Group holds a claim for $78,717.45.
The 51-year-old chain was founded by Irving J. Shulman in 1961 as Daffy Dan’s Bargaintown.
On its Chapter 11 filing date, the company had 19 stores in operation. Inventory will be liquidated via a joint venture between Gordon Brothers and Hilco Trading. That process is expected to be completed by the end of October.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion