Date: July 2021
Category/Product(s): Apparel
The North American arm of apparel maker and brand owner Global Brands (GBG USA) filed for Chapter 11 bankruptcy at the end of July. Established in 2005 by the century-old Li & Fung, the company licenses major brands — such as All Saints, Saga, and Le Tigre — and makes private label products as well. A large majority of its sales (around 85%) come from wholesaling to major retailers like Macy’s, Nordstrom, Bloomingdale’s, and Costco, which left it vulnerable to the decline of retail store foot traffic and consumer spending brought on by the pandemic. Compounded by supply chain disruption, liquidity issues, and pressing royalty obligations, Covid-induced shifts led to sales dropping 44% in the fiscal year ended March 2021. GBG USA entered into purchase agreements for its Aquatalia brand and others and looked to sell its remaining assets under court supervision
