Band of Outsiders will remain in the hands of Belgian fashion fund CLCC SA, following Wednesday’s public auction of the brand’s intellectual property and inventory. CLCC SA gained peaceful possession of Band of Outsiders’ assets after the label was unable to make payment on a credit line of more than $2.5 million.

The fund will operate and distribute Band of Outsiders merchandise in the future. It appears that the brand will continue without the creative input of the label’s founder Scott Sternberg, a source told WWD.

It is understood that while multiple bids and arrangements were proposed to CLCC’s law firm Otterbourg P.C. and sale adviser Alan Cohen of Abacus Advisors Group, none would have covered the total $2.5 million debt that the fund incurred.

It is unclear how CLCC will proceed with the Band of Outsiders label. A preliminary outline for future collections and who will design them could not be immediately learned.

“CLCC SA is now the owner of the inventory and intellectual property of Band of Outsiders after successfully credit bidding a portion of its debt at the public auction sale on July 29,” a spokesperson for the fund said in a statement. “CLCC SA believes in the Band of Outsiders brand and will continue to market Band of Outsiders in the U.S. and overseas,” they added.

The fund says that interested parties can contact Cohen with inquiries into acquiring portions of the Band of Outsiders inventory, or for other agreements, such as licensing contracts.

News that Band of Outsiders had canceled its fall line and laid off staff first broke on May 26. The label has since closed its retail operations at 70 Wooster Street, following a liquidation sale.

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