Cornerstone Apparel is the latest teen retailer to file for Chapter 11 bankruptcy court protection.The value player does business under the name Papaya Clothing, and operates out of a 75,000-square-foot complex in Los Angeles that includes a warehouse and distribution center. The company made its filing Wednesday in a Los Angeles federal bankruptcy court.The petition lists estimated assets at between $1 million and $10 million. Liabilities were estimated at between $10 million and $50 million.Cornerstone’s chief executive officer is Kenneth Choi. Most of the debtors listed in the top 20 list of unsecured claims were trade claims, such as suppliers or manufacturers, although there were a few landlords holding claims for unpaid rent.A court document filed by Tae Yi, president, secretary and chief financial officer, notes the company operates a chain of apparel stores “targeting teen, juniors and the ‘young at heart,’” or those between ages 16 and 25. The store count on the date of filing totaled 80, mostly located in U.S. malls and shopping centers. It has about 1,300 employees and in 2016, generated annual revenues of more than $134 million. There is no secured debt, according to a court filing.Yi said in the document that the company established a production line that can “take a new design from start to finish within a two-week period,” comparable to some of the fast-fashion players. But apparently even operating like a fast-fashion firm couldn’t save the company from a bankruptcy filing.Yi attributed the financial problems to the 50 new retail stores that were opened in the last six years, which he told the court “took a heavy financial toll on the business operations” from construction and other start-up costs, as well as other retail operating expenses. He said the company, in the wake of decreasing store sales, had closed some stores, leaving the 80 in operation, but now needs time to “evaluate the viability of the remaining stores and identify other ways to decrease operational costs and increase profitability.”While many stores are located in California, Florida and Texas, there were others located in Maryland, New Jersey, New York, North Carolina and Virginia.Yi said he believes the company is able to formulate a restructuring plan that can be confirmed by the court so the company can exit bankruptcy proceedings.
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.
@beyonce chose a custom gown by @falgunishanepeacockindia for mother @mstinalawson 's second annual Wearable Art Gala last night. The gown, which took 10 days to make, was inspired by Nubian warrior queen Amanishakheto. Reporting by @hernameislex . #wwdeye 👑 🐝#beyonce
After dressing @justintimberlake for his Super Bowl halftime performance last month, @stellamccartney has designed the star’s "Man of the Woods" tour wardrobe. Timberlake will be wearing a mix of pieces from McCartney’s fall men's collection as well as custom designs and items from his own closet. #wwdfashion