MOSSIMO GETS $4.5 MILLION LOAN TO SKIRT INVOLUNTARY BANKRUPTCY
LOS ANGELES — It looks like Mossimo Inc. is getting the money it needs to stay out of bankruptcy until its licensing deal with Target produces revenue next year.
According to published reports in Los Angeles, Mossimo Giannulli, the company’s founder, has secured a $4.5 million loan from CIT Inc. through a partial personal guarantee for half the amount. The company’s inventory and accounts receivable are also being used as collateral.
Mossimo has also agreed to pay $336,000 to three unsecured creditors — Pacific Apparel Resources, Wilmar Concepts and Caeco Enterprises — who filed an involuntary Chapter 7 liquidation bankruptcy petition against the company in May, according to reports. The three firms had contended that they were owed a combined $650,000.
Mossimo has filed a petition in U.S. Bankruptcy Court to dismiss the involuntary bankruptcy. A hearing is scheduled for July 25.
Responding to rumors to the contrary last month, officials at Target told WWD they plan to go ahead with the licensing deal.
Attorneys for Mossimo and the three suppliers could not be reached for comment at press time.