Dozens of retailers have reorganized during the pandemic so far, and their experience has some lessons for those on the brink.
The executive chairman of the board and chief executive officer of American Eagle Outfitters discusses fashion amid the era of COVID-19, the future of retail and what he’s learned in 50-plus years as a merchant.
“Like most retailers in the United States, the debtor has been impacted by the COVID-19 pandemic.”
The ailing brand was declared bankrupt by the court of Bologna, Italy, but its licensee C&S is committed to continue producing and distributing the brand’s apparel.
But the retailer is still registering losses from its other brands.
Company shares fell more than 33 percent during Monday’s trading session as a result.
The men’s wear retailer is expected to emerge from bankruptcy before the end of the year.
But the mall owner said the company will ultimately benefit from a leaner portfolio post-pandemic.
The employees of the bankrupt company will be paid for 12 months through national wage compensation funds.
The pandemic and shutdowns forced the landlords to restructure with lenders in bankruptcy court.
NMG’s ceo has notified vendors of “significant” staff reductions.