A group calling itself the “proposed attorneys for the official committee of unsecured creditors” has filed an objection with U.S. Bankruptcy Court against the proposed stalking horse bid from Authentic Brands to acquire the troubled manufacturer, claiming the sale process has been manipulated to the point that it will result in an “artificially low sale price.”
In papers filed late Thursday by Leonard, Street and Deinard of Minneapolis and obtained by WWD, the committee alleges that HMX’s chief executive officer, Doug Williams, “engineered from the beginning to ensure a favorable result for Doug Williams, Salus Capital Partners, and the stalking horse bidder at the expense of the estate and the unsecured creditors in particular. Material terms of the proposed sale were not disclosed until a few days before the auction and in many instances they were never revealed at all. This, of course, served to chill interest in the sale and will chill bidding at the auction as well.”
The papers go on to say that “potential bidders complained repeatedly to the committee about their inability to get comfortable with the transaction because they could not get their hands on critical information. In addition, many of the sale terms that were disclosed were so confusing or ambiguous that theyserved to chill bidding even further. The Committee simply cannot, and willnot, support any sale conducted in such a skewed and unfair manner.”
The group also alleges that Salus, the debtors and Williams “refused to honor basic requests for information” from “an alternative financing source.”
According to sources, CIT is among the firms willing to finance an alternative bid to Authentic Brands’. The papers say that Williams “stands to have his highly lucrative employment contract assumed by the stalking horse bidder, and will gain control of the debtors’ assets without making any personal investment or incurring any personal liability in exchange. And Authentic Brands “will obtain extremely valuable intellectual property and licensing rights at a remarkably favorable price.”
As a result, the group is asking that the motion by Authentic Brands to acquire the company be denied.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast