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.
“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)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
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