The retail sector was hit hard during the Covid-19 pandemic in 2020 as luxury department stores, high-end fashion retailers, luxury brands, and retail chains faced financial distress and filed for bankruptcy.
Luxury department store Lord & Taylor, high-end retailer Neiman Marcus, luxury apparel chain Brooks Brothers, and designer brand manufacturer Centric Brands all filed for Chapter 11 protection in 2020.
Following the pandemic, the retail sector faced new economic obstacles, such as rising labor and product costs driven by inflation, higher interest rates on debt, and consumers’ changing attitudes toward spending based on financial uncertainties.
Related: Popular restaurant and bar chain files for Chapter 11 bankruptcy
Some retailers were slow to recover from the effects of the pandemic. Anne Fontaine USA, the U.S. affiliate of the Paris-based luxury boutique chain, in January 2024 filed for Chapter 11 Subchapter V bankruptcy protection to reorganize in the U.S. Bankruptcy Court for the Southern District of New York, asserting that the company has not been able to recover from financial distress caused by the Covid-19 pandemic.
Sometimes, a bankruptcy filing led to shutting down a retailer’s brick-and-mortar operations.
Luxury apparel chain Ted Baker Canada, which operated 31 Ted Baker stores in the U.S., nine in Canada, eight Brooks Brothers Canada shops, and seven Lucky Brand Canada stores, filed for restructuring under Canada’s Companies’ Creditors Arrangement Act and for Chapter 15 bankruptcy in the U.S. to liquidate and close all 56 of the North American stores.
Ted Baker Canada filed for CCAA protection on April 24, 2024, in the Ontario Superior Court of Justice to stay all court proceedings by creditors while it reorganized in the Canadian court. It also filed for Chapter 15 in the U.S. Bankruptcy Court for the Southern District of New York, seeking recognition of its Canadian case as a foreign main proceeding, which stays all court proceedings against the debtor in the U.S.
After shutting down all stores, the retailer’s owner Authentic Brands Group in August 2024 reached an agreement with United Legwear & Apparel Co. to relaunch e-commerce retail operations for Ted Baker in the U.S., Canada, the U.K., and Europe.
Sash Group Inc., which sells The Sash Bag handbag and accessories, filed for Chapter 11 bankruptcy.
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Sash Bag maker files for bankruptcy
And now, fashion retail brand Sash Group Inc., which markets and sells The Sash Bag crossbody handbags and accessories, filed for Chapter 11 protection to reorganize its business, facing significant tax obligations and unsecured creditor debt.
Related: Popular athletic shoe chain files for Chapter 11 bankruptcy
The San Diego-based debtor listed $1 million to $10 million in assets and liabilities in its petition filed on March 25 in the U.S. Bankruptcy Court for the Southern District of California. Its unsecured creditors include Silvia Mah, owed about $196,250; Shopify, owed about $95,600; and PayPal, owed about $92,000.
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The company also has significant tax obligations to multiple state revenue departments and the Canadian Revenue Agency.
The debtor sells leather, faux leather, and fabric crossbody bags with 10 ergonomically designed pockets, adjustable straps, hidden cash pockets, zippered passport pockets, and a 30-day warranty through its website, thesashbag.com.
The company has given back to the community, according to its website, through charitable contributions to the Susan B. Komen breast cancer organization, Precious Kids Foundation to benefit Ugandan children, Lotus Outreach International for at-risk women and children, Monarch School in San Diego, and Women’s shelters in San Diego.
Related: Award-winning cosmetics brand files for Chapter 11 bankruptcy
