NEW YORK — A judge is expected to approve Malden Mills Industries’ reorganization plan in the coming days and sources within the company said the firm will exit bankruptcy by late May.
Malden filed its plan late Friday in U.S. Bankruptcy Court in Worcester, Mass., that will allow the fleece maker to exit Chapter 11. Malden submitted three previous reorganization plans, although they were each amended and the firm’s Feb. 18 deadline to file was postponed until last Friday.
The plan has an exclusive option for chairman Aaron Feuerstein to regain control of the company from secured lenders and unsecured creditors for $92 million; however, he must do so before July 30 or the figure increases. In total, he has three years to buy back the company. According to Malden Mills business manager David Costello, Feuerstein has raised more than half the $92 million and could have the entire figure when the company emerges from court protection.
When the company exits Chapter 11, Malden’s main lender, GE Capital, the finance arm of General Electric, will own 93.5 percent and Feuerstein will own the remaining 6.5 percent. Once he exercises his option to buy back the company, he will own Malden outright, as he did before the company filed for Chapter 11 in November 2001, when it had a debt load of $140 million.
The reorganization plan also mandates that Feuerstein step down as chief executive officer, but he will remain chairman and president of the company. According to Costello, if Feuerstein successfully regains control of the company he will resume his role as ceo.
Malden is based in Lawrence, Mass., and is best known as the marketer and manufacturer of its Polartec brand fabrics. It currently has a sales volume of about $168 million.
“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