The Collected Files for Chapter 11

The Collected (Los Angeles) has filed for Chapter 11 bankruptcy following a decline in sales, liquidity issues and a disrupted sale process, due to the COVID-19 pandemic, reports Retail Dive. The Collected is parent company to Joie, Equipment and Current/Elliot fashion brands.

The company will move to close its 33 brick-and-mortar location, changing focus to e-commerce.

The Collected filed with a pre-packaged plan that would turn over equity to secured lenders. The plan reduces secured debt to $30 million, down from more than $185 million. This would allow the company to save jobs and vendor relationships, and also “preserve and enhance its unique and highly-regarded brand offerings through e-commerce and wholesale sales,” Evan Hengel, the company’s CFO, told Retail Dive.

The company restarted its sale process before filing, however, offers have been below the value of secured debt, and a confirmation hearing for its reorganization plan will be sought within 45 days.