The company shed about 2,400 people, with the majority of the cuts done in waves Monday.
The wind down is rumored to have begun Friday, with a significant number of layoffs expected Monday as workers report for their shifts.
The Los Angeles company’s deal to Gildan Activewear received court approval along with smaller deals on some retail leases also receiving the OK.
The Camden High Street store is now the lone door open in the region.
A roundup of recent action in the courts involving the fashion and retail industries.
The second Chapter 11— seen as key to getting a sale of all or part of the business done — is being called into question by the group owed $2.5 million from the company’s first bankruptcy.
The company’s unsecured creditors committee is pushing back on terms of the DIP financing and want more time to investigate the lenders involved in the company’s first bankruptcy.
The company said it’s still courting buyers for the retail business, but the likelihood of a bidder acquiring all 107 doors and their inventory is looking less likely.
Interest from Gildan Activewear, Color Image Apparel and possibly more bidders in the company’s facilities prompted the latest update on the company’s workforce.
The Los Angeles-area firm plans to enter the fray with a potential bid likely to rival what’s on the table by Gildan Activewear—unless Color Image can find a partner interested in the retail piece of the business.