Thu 09/16/2021 17:36 PM
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Relevant Document:
Voluntary Petition

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Garden City, Calif.-based Lorna Jane USA Inc., which serves as the U.S. retail arm for Lorna Jane, an Australian women’s activewear retail brand, filed for chapter 11 protection today in the Bankruptcy Court for the Central District of California. The company reports $6.8 million in assets and $48.7 million in liabilities. According to the petition, the debtor intends to proceed under subchapter V of chapter 11. The debtor is represented by Winthrop Golubow Hollander in Newport Beach, Calif. The case number is 21-17267. The case has been assigned to Judge Neil W. Bason.

According to schedules attached to the petition, the debtor has $9,000 in secured debt, $47.5 million in nonpriority unsecured claims - including $32.3 million of intercompany debt owed to LJ USA Holdings Inc and $9.9 million of intercompany debt owed to Lorna Jane Pty Ltd - and $1.2 million in priority unsecured claims. The debtor’s list of 20 largest unsecured creditors consists primarily of rent claims ranging from $17,210 to $747,425 and is led by the U.S. Small Business Administration with a $1.2 million PPP loan claim.

The debtor is owned 50% by William Clarkson and 50% by Lorna Jane Clarkson, both of whom are based in Australia and serve as directors.

The Lorna Jane USA website says that “due to ongoing impacts of Covid-19 we have made the decision to close our US Retail stores to operate exclusively online to continue to bring you more of the best Australian activewear than ever before.”

Reorg First Day is monitoring this case and will provide further coverage as appropriate.
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