nc.’s chances of emerging from bankruptcy intact appear to be deteriorating.
With the possibility that a sale may be an "unworkable option," Jacobson’s is now pursuing a dual path in its bankruptcy proceedings that could lead to the specialty store’s liquidation.
Jacobson’s last week said it plans to file a motion "in the next several days" in Detroit bankruptcy court that would allow it to solicit bids to sell the company at the same time as it prepares to liquidate the operation.
The chain, based in Jackson, Mich., does not have a white knight coming to its rescue yet.
The retailer said that it has worked with its financial advisers for several months to identify and evaluate restructuring alternatives. Due to defaults under the $100 million debtor-in-financing facility administered by Boston-based Fleet Retail Finance Inc., the retailer and its lenders agreed to the dual procedure so Jacobson’s can raise money to repay its DIP obligations.Jacobson’s disclosed that the proceeds from any sale resulting from successful bids "will not be sufficient to repay unsecured creditors in full."
Outstanding common shares will be canceled, and those holders will not receive any distributions from the bankruptcy.
Carol Williams, Jacobson’s president and chief executive officer, said: "After extensive analysis, Jacobson’s has concluded that it is necessary to simultaneously pursue two paths. We of course would prefer to sell Jacobson’s to a buyer whose financial resources would enable our company to emerge from bankruptcy. If this alternative is not feasible, the company will be compelled to liquidate its assets. Our intent has been to find a way to move forward with the Jacobson’s identity intact. Given the current unsettled state of the specialty retail sector, however, that might prove to be an unworkable option."
The 134-year-old company said it will request the bankruptcy court to schedule a hearing to accept offers during the week of July 22. That time frame will give the retailer, its DIP lenders, the unsecured creditors’ committee and interested buyers four weeks to analyze any offers.
Jacobson’s, which filed its Chapter 11 on Jan. 15, operates 18 stores in Michigan, Indiana, Kentucky, Kansas and Florida.
“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