DEV&P FILES CH.11

Byline: Vicki M. Young

NEW YORK — Cash flow problems have forced deV&P Inc. into bankruptcy court.
The company that relaunched the Adrienne Vittadini label and the Emanuel/Emanuel Ungaro bridge apparel line filed its Chapter 11 bankruptcy court petition on Thursday in Manhattan. According to the petition, the company is in the process of winding down its operations. Newmark & Co. Real Estate Inc. is deV&P’s financial restructuring and real estate advisor.
DeV&P was formed in Spring 1999 by Maura de Visscher and Kimberly Perrone, who had previously worked together at GFT, directing the licensed Emanuel/Emanuel Ungaro business. Both are co-chief executive officers of DeV&P. In September 1999, they acquired the Vittadini business and trademarks from Marisa Christina Inc. in a $9.5 million cash transaction. Three weeks later they announced that they had acquired the license for the Emanuel/Emanuel Ungaro bridge line from the Salvatore Ferragamo company, which controls the Emanuel Ungaro brand and owns a minority stake in deV&P.
Michael Rubin, chief restructuring officer of deV&P, said in an affidavit submitted with the Chapter 11 petition that the company was “conceived as a global enterprise with a mission of manufacturing, marketing, selling and distributing name brand apparel, footwear and other related accessories” under the Vittadini and Emanuel/Emanuel Ungaro trade names. Finova Capital Corp. provided the company with a revolving credit facility. While the company experienced steady sales growth during its first year of operation, the firm also incurred significant and unexpected costs beyond its projected start-up costs.
According to Rubin, deV&P was forced to draw upon its line of credit with Finova in amounts greater than anticipated. Adding to the cash flow problems were difficulties in collecting accounts receivable from certain of its customers. Rubin said that the company’s board determined on Nov. 8 to cease operations and proceed with a wind-down of its affairs.
The company, which lists its offices at 234 W. 39th Street, said that it expects funds will be available for distribution to creditors.
DeV&P’s largest secured creditor is Finova, at $10.6 million. The unsecured creditors holding the six largest amounts are: Worldwide Trading Resources, Kwai Chung N.T., Hong Kong, $299,751; Corum Knitting Factory, Kwun Tong Kowloon, Hong Kong, $248,081; Hachette Filipacchi Magazines, Hartford, Conn., $206,398; Hearst Magazines, Red Oak, Iowa, $186,715; A/R Media Inc., here, $159,923, and Lung Kae Garment Co., Kwun Tong Kowloon, Hong Kong, $159,611.
Paul Traub of Traub, Bonacquist & Fox is deV&P’s bankruptcy counsel. The apparel firm is also seeking to hire Phillips Nizer Benjamin Krim & Ballon as special counsel on potential intellectual property-related issues that could arise during the course of the bankruptcy proceeding.
The company, according to bankruptcy court records, is also a party to seven lawsuits. While the bulk of the lawsuits center on collection actions, one concerns an Australian license-distribution dispute involving Papoucci. No other information was provided in the petition about the licensing dispute.

load comments
blog comments powered by Disqus