TOKYO — Hanae Mori’s ready-to-wear and licensing business on Thursday filed for Civil Reorganization — similar to Chapter 11 in the U.S. — in the Tokyo District Court with debt of $80 million (converted from yen at current exchange rates).
The designer’s couture business, HM Haute Couture, is not affected by this action. In January, Mori’s couture and rtw businesses were split, with the Japanese trading company Mitsui & Co. and investors including London’s N.M. Rothschild & Sons Ltd. establishing a new company to manage the rtw and trademark and licensing businesses. The groups invested between $31 million and $38 million to acquire the rtw and trademark components, and provide working capital.
Mori’s worldwide business, including merchandise sales and licensing royalties, was about $154 million last year.
Passed in 2000, the Civil Reorganization Law is similar to Chapter 11, but allows companies to reach quicker conclusions with their creditors.
Mori made her debut at the Paris haute couture in 1977 and continues to show there.”