The Los Angeles-based denim brand filed for Chapter 7 bankruptcy protection late Friday, seeking a liquidation of its assets. The brand’s e-mail lines and office numbers have already been disconnected. A representative of the brand could not be reached.
In its typical first day filings, Denim of Virtue showed it was running on slim margins and has found itself upside-down in debts. The company listed assets of just under $100,000 while liabilities were listed as nearly $1.7 million.
The company experienced some success in the early years after it launched in 2006, with celebrity wearers like Kristen Stewart and Kellan Lutz (both at the peak of their “Twilight” fame), Victoria Beckham before she was running her own luxury label, and Miley Cyrus, but in recent years it appears to have struggled. The brand is no longer for sale through any third-party retailer and as a denim-only brand, the impact on manufacturing from the coronavirus shutdown was likely detrimental.
Since late 2018, the brand seems to have been trying to revamp its image to something more modern and street-style infused. It even had a campaign with model Anja Rubik last year.
The company also has an operation in Korea under the same name. Denim of Virtue Korea is the U.S. company’s biggest creditor at $1.4 million in debt. The company also owes tens of thousands of dollars to various independent sewers, cutting companies and even a design fee of $40,000 to Jimmy Taverniti.