Moods of Norway, the brightly colored European fashion brand, has filed for bankruptcy.
“It’s incomprehensibly sad that the adventure is now over,” Moods of Norway founder Simen Staalnacke told Norwegian Broadcasting (NRK) after he revealed the bankruptcy filing to employees. “We have really tried to make this work. I feel like words aren’t enough in such an extreme situation.”
The brand, which started in men’s wear but moved into women’s, hasn’t done well in the past few years; earlier this week its lead bank, Sparebanken Sogn og Fjordane, stopped further credit, and Moods of Norway hasn’t been able to raise new capital. Last year Varner, a Norwegian apparel chain, bought 25 percent of the company, but that infusion of cash couldn’t turn things around.
For the past few years, Moods of Norway, which was started in 2002, has been in expansion mode, which ultimately led to its profitability challenges.
In 2012, the company hired George Santacroce, an industry veteran whose prior stints included Bergdorf Goodman and Aquascutum of London, to build up the U.S. business. Shortly after that, it tapped Keanan Duffty as a design consultant. At its height Moods of Norway operated 15 stores worldwide. For now, the stores are still open.
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