Los Angeles men’s suiting company Bachrach went through two rounds of bankruptcy in less than a year and is now in the midst of liquidating its 14 stores.
The firm confirmed the liquidations Thursday saying the company would shutter its stores in Texas, Virginia, New Jersey, Tennessee, Michigan, Wisconsin, Indiana and Illinois. The company, at its peak, counted 32 doors.
Soft traffic into malls for the mall-based retailer proved a stumbling block for the business, forcing it to reorganize via Chapter 11 last year. The process was speedy at 120 days and the company emerged from it in August, armed with plans for how to grow the business and hedge against the increased competition from online.
The initial Chapter 11 allowed the company to close seven underperforming doors, renegotiate four other leases and work out a discount on some of its debt.
In August, president Brian Lipman outlined a plan to WWD that included the launch of a digital, fashion-forward line called Lucky Prey, aimed at a younger consumer — the 20- to 35-year-old set. The brand, with its suits and separates, would have made it more competitive with online plays such as a Combatant Gentleman or Bonobos. At the same time, the original Bachrach brand would retain its higher price points and focus on an older demographic.
Despite the rapid reorganization under the initial Chapter 11, the mall traffic issues continued to hamper the company’s physical store footprint, leaving it in a cash crunch, unable to pay rents and debt payments, according to court documents. The situation only continued to snowball when vendors stopped shipping inventory until the company was able to close on a refinancing deal, leaving Bachrach short of merchandise to sell during the holidays. The company first attempted liquidation outside of court, but ultimately filed for Chapter 11 Feb. 16.
Bachrach estimates the store closing and online sales to last 16 weeks and will also aim to sell off the company’s intellectual property, court documents said.