GBG USA Inc.
FILING ALERT: GBG USA, Subsidiary of Global Brands Group, Files Chapter 11 in the Southern District of New York to Sell Assets to WH AQ Holdings and Hilco Brands as Stalking Horse
Thu 07/29/2021 10:05 AM
Relevant Documents:
Voluntary Petition
Press Release
To view the relevant documents above as well as our First Day team's coverage of all U.S. chapter 11 cases filed since 2012 with over $10 million in liabilities including the GBG USA chapter 11 filing request a trial here: https://reorg.com/trial
New York-based GBG USA Inc., whose ultimate parent is Global Brands Group Holding Limited, “one of the world’s leading branded fashion accessories, footwear, and apparel companies,” that designs, develops, markets and sells products under various owned and licensed brands, such as Fiorelli, Sean John, AllSaints, Navigare, Dirk Bikkembergs, Dimensione Danza, according to its website, filed for chapter 11 protection today in the Bankruptcy Court for the Southern District of New York. The company reports $1 billion to $10 billion in both assets and liabilities. The company is represented by Willkie Farr & Gallagher as counsel, Ankura Consulting Group as restructuring advisor and Ducera Partners as financial advisor. Prime Clerk is the claims agent. The case number is 21-11369.
The board resolutions attached to the petition reference a DIP credit agreement with ReStore Capital, LLC as agent. The resolutions also reference a stalking horse asset purchase agreement. A press release issued by Global Brands Group Holding Limited says that GBG USA, its indirect wholly owned subsidiary and certain other subsidiaries incorporated in North America have filed voluntary petitions, to “conduct a court-sanctioned competitive marketing and auction process for a sale of substantially all of the US Debtors’ assets, businesses and/or inventory.” The release adds that “GBG USA and certain other US Debtors have entered into an asset purchase agreement (the ‘Stalking Horse Agreement’) with WH AQ Holdings LLC (as purchaser) and Hilco Brands LLC (as guarantor) (together, the ‘Stalking Horse Bidder’, and its bid, the ‘Stalking Horse Bid’), pursuant to which the Stalking Horse Bidder will serve as the stalking-horse bidder in the Section 363 Sale for the ‘Aquatalia’ brand and related working capital assets,” and that the “Stalking Horse Bidder, independent third parties, have committed to a purchase price of US$17.3 million (approximately HK$134.9 million) for the Aquatalia Assets.” The release adds that in addition to the Aquatalia assets, “the US Debtors are also seeking to maximise recoveries for their creditors by marketing their other fashion brands and assets, including Ely & Walker, AIRBAND, MagnaReady, Yarrow, b New York and JUNIPERunltd.”
The company’s list of 50 largest unsecured creditors consists primarily of rent, trade and royalty claims and is led by KR Hollywood LLC with a rent claim of an undisclosed amount, Kenneth Cole Productions with a $6 million royalties claim, Authentic Brands Group with a $3.6 million royalties claim and ERST 1333 Broadway LLC with a $2.5 million rent claim.
According to the petition, GBG USA Inc. is a wholly-owned subsidiary of GBG North America Holdings Co., Inc., which is a wholly-owned subsidiary of GBG International Holding Company Limited, which is a wholly-owned subsidiary of Global Brands (Hong Kong) Limited, which is a wholly-owned subsidiary of GBG International Holding Limited, which is a wholly-owned subsidiary of Global Brands Group Holding Limited.
A list of debtors follows:
Reorg First Day will provide a full summary once the first day briefing is complete.
Voluntary Petition
Press Release
To view the relevant documents above as well as our First Day team's coverage of all U.S. chapter 11 cases filed since 2012 with over $10 million in liabilities including the GBG USA chapter 11 filing request a trial here: https://reorg.com/trial
New York-based GBG USA Inc., whose ultimate parent is Global Brands Group Holding Limited, “one of the world’s leading branded fashion accessories, footwear, and apparel companies,” that designs, develops, markets and sells products under various owned and licensed brands, such as Fiorelli, Sean John, AllSaints, Navigare, Dirk Bikkembergs, Dimensione Danza, according to its website, filed for chapter 11 protection today in the Bankruptcy Court for the Southern District of New York. The company reports $1 billion to $10 billion in both assets and liabilities. The company is represented by Willkie Farr & Gallagher as counsel, Ankura Consulting Group as restructuring advisor and Ducera Partners as financial advisor. Prime Clerk is the claims agent. The case number is 21-11369.
The board resolutions attached to the petition reference a DIP credit agreement with ReStore Capital, LLC as agent. The resolutions also reference a stalking horse asset purchase agreement. A press release issued by Global Brands Group Holding Limited says that GBG USA, its indirect wholly owned subsidiary and certain other subsidiaries incorporated in North America have filed voluntary petitions, to “conduct a court-sanctioned competitive marketing and auction process for a sale of substantially all of the US Debtors’ assets, businesses and/or inventory.” The release adds that “GBG USA and certain other US Debtors have entered into an asset purchase agreement (the ‘Stalking Horse Agreement’) with WH AQ Holdings LLC (as purchaser) and Hilco Brands LLC (as guarantor) (together, the ‘Stalking Horse Bidder’, and its bid, the ‘Stalking Horse Bid’), pursuant to which the Stalking Horse Bidder will serve as the stalking-horse bidder in the Section 363 Sale for the ‘Aquatalia’ brand and related working capital assets,” and that the “Stalking Horse Bidder, independent third parties, have committed to a purchase price of US$17.3 million (approximately HK$134.9 million) for the Aquatalia Assets.” The release adds that in addition to the Aquatalia assets, “the US Debtors are also seeking to maximise recoveries for their creditors by marketing their other fashion brands and assets, including Ely & Walker, AIRBAND, MagnaReady, Yarrow, b New York and JUNIPERunltd.”
The company’s list of 50 largest unsecured creditors consists primarily of rent, trade and royalty claims and is led by KR Hollywood LLC with a rent claim of an undisclosed amount, Kenneth Cole Productions with a $6 million royalties claim, Authentic Brands Group with a $3.6 million royalties claim and ERST 1333 Broadway LLC with a $2.5 million rent claim.
According to the petition, GBG USA Inc. is a wholly-owned subsidiary of GBG North America Holdings Co., Inc., which is a wholly-owned subsidiary of GBG International Holding Company Limited, which is a wholly-owned subsidiary of Global Brands (Hong Kong) Limited, which is a wholly-owned subsidiary of GBG International Holding Limited, which is a wholly-owned subsidiary of Global Brands Group Holding Limited.
A list of debtors follows:
Reorg First Day will provide a full summary once the first day briefing is complete.
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