William H. Oliver, Jr. & Associates
Call today for a free consultation
Local 732-988-1500

Blog

Clothing retailer files Chapter 11 bankruptcy

The effects of low consumer spending have hit several retail businesses hard. People are seemingly visiting malls less, as hard economic times lead to more cautious spending. In this type of climate, consumers and businesses are all dealing with financial strain, and many people are considering filing for bankruptcy.

The women’s apparel retailer, Love Culture Inc., is the latest company to be susceptible to such circumstances. The company, which has over 80 stores across several states filed for Chapter 11 bankruptcy recently. They stated in a petition filed in a U.S. bankruptcy court in New Jersey that they have $50 million in assets and liabilities. 

Founded in 2007, the company’s primary market was young women aged between 18 and 35 years. The business expanded to include an online store and an upscale brand in 2012, but costs of improving technology and expanding online strained the apparel retailer’s resources. It was unable to deliver services to its consumers effectively as a result, according to its chief restructuring officer.

That same individual also stated that the sales of the business had consistently fallen below projections, which in turn resulted in suppliers demanding faster payment. The company had trouble obtaining credit. All these issues have translated to serious financial challenges for the clothing business causing it to look for debt relief.

Now the company is seeking to close stores that are running losses as part of business reorganization. It also intends to restructure its debt and to look into the possibility of selling all of its assets as a going concern.

This is just one example of one resolution to mounting debt and financial troubles. Every situation is unique, however. Determining what the best route to relief may be can be overwhelming; however, with the help of an attorney people can tackle debt and get back on track.

Source: Reuters, "UPDATE 1-Clothing chain Love Culture files bankruptcy, may be sold," Jonathan Stempel, July 17, 2014

No Comments

Leave a comment
Comment Information

Get A Free Lawyer Consultation

With offices in Toms River and Neptune, attorney William H. Oliver is ready to answer your questions and help you find the right debt relief solution. Evening and Saturday appointments are available. Call local: 732-988-1500 or fill out our contact form.

Email Us For a Response

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Toms River Office
609 Main Street
Toms River, NJ 08753

Fax: 732-775-7404
Toms River Law Office Map

Neptune Office
2240 State Route 33
Neptune, NJ 07753

Phone: 732-341-1550
Fax: 732-775-7404
Neptune Law Office Map

visa, master card, american express, discover network