LOS ANGELES — Four trim suppliers have filed an involuntary petition against manufacturer Adamson Apparel Inc., seeking about $100,000 in unpaid invoices.
In the notice filed May 6 in U.S. bankruptcy court here, Downtown Button & Supply Inc.; Express Tags and Labels Inc.; Tagtime USA Inc., and Direct Label & Tag LLC all claim payment hasn’t been received for delivered merchandise to Adamson, principally owned by Arnie Simon.
“These are creditors that have had ongoing relationships with Adamson and are past due and want to continue to ship,” said Mark Brutzkus, an attorney representing the trim companies. Adamson has manufactured the XOXO, Baby Phat and Members Only labels after licensor Aris Industries Inc., whose president is also Simon, gained control of those licenses from Grupo Xtra last year. Grupo Xtra later liquidated under Chapter 7 bankruptcy.
Kellwood Co. last week announced its acquisition of the XOXO license from Global Brand Holdings (which is buying the brand from Aris), and will begin shipping in October.
Adamson attorney Michael Novicoff, who said he still hasn’t been served with the case, added that he filed a motion in court Tuesday morning to dismiss the claim in its entirety. “It appears to us that this is a litigation tactic by a creditor of our predecessor licensee [Grupo Xtra], and these creditors are upset they can’t get money from Grupo so they’re trying to get money from us instead,” Novicoff said. “It’s wholly improper. You don’t put a substantial corporation in involuntary bankruptcy proceedings over a five-figure debt, especially when the debt is not ours.”
Executives of the former Grupo Xtra could not be reached.
This story first appeared in the May 14, 2003 issue of WWD. Subscribe Today.