NEW YORK — Richard Sebastiao was brought into Allou Healthcare Inc. to straighten out its troubled operations, and Thursday he apparently fired those who had hired him.
While all four retain seats on its board, Allou’s principal executive officers — Victor Jacobs, chairman; Herman Jacobs, chief executive officer; Jacob Jacobs, executive vice president, and David Shamilzadeh, president and chief financial officer — have been terminated, an announcement from the company said.
However, Helen Chaitman, a bankruptcy lawyer at Phillips Nizer, questioned Allou’s right to make such a move. "I don’t know where Allou Healthcare Inc. has the authority to do this," she said. "This is not accurate. The board has not met for this purpose." She declined further comment.
Her firm was hired by the board to represent Allou in bankruptcy court after its lenders — Congress Financial Corp., Citibank and LaSalle Business Credit Inc. — filed an involuntary Chapter 11 petition against the firm last week. Those same lenders earlier had filed similar petitions against four Allou subsidiaries, which are now in Chapter 11 proceedings in a Brooklyn federal bankruptcy court.
According to bankruptcy court papers, Allou’s board is seeking court approval to hire Phillips Nizer as bankruptcy counsel and have Jenkens & Gilchrist removed from the case. The boards of the four bankrupt subsidiaries told the court they hadn’t consented to the hiring of Jenkens & Gilchrist as bankruptcy counsel, even though a resolution was "purportedly signed" by Shamilzadeh to the contrary.
Furthermore, court documents alleged that, upon taking control of the operations of the debtors on March 27 as chief restructuring officer, Sebastiao and his management firm, RAS Management Advisors, "immediately terminated all of the Hasidic Jewish employees and locked the Jacobses out of the premises, creating a massive employment discrimination exposure for the lenders."
The press release said inventories and accounts receivable backing its loans had been overstated by between $110 million and $115 million. Stuart Glasser, now with Value City Department Stores, and Jeffrey Berg have resigned from the board, the firm said.
Calls to Allou’s headquarters in Brentwood, N.Y., for comment were forwarded to an answering machine that said that the office was closed.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)