John Varvatos files for relief under Chapter 11

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.

 

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.#

The company has reached agreements with an affiliate of Lion Capital LLP, an existing investor, under which the company will sell its business to Lion as a going concern in order to ensure the business’s long-term success. The voluntary filing for relief under Chapter 11 is to facilitate this transaction, John Varvatos said in a media statement.

 

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.#

“The agreements with Lion represent a critical step in our process to transform our business to drive long-term, sustainable growth,” the company’s founder, John Varvatos, said. “We have taken decisive action to respond to the challenges that all retailers face in the present environment and we remain extremely confident that our brand, celebrating its 20th year in business, will emerge even stronger. We have a passionate team, a fierce global consumer following and a commitment to our customers, whom we expect to serve for many years to come.”

 

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.#

The sale to Lion will be subject to approval of the bankruptcy court and may include a court-supervised auction in which other bidders may offer a higher price for the company’s assets. Lion remains confident in the long-term potential of the company’s business to be operated as a going concern in the future and has additionally committed to provide, subject to court approval, debtor-in-possession (DIP) financing, which, when combined with the company’s projected cash flows, is expected to support its operations during the restructuring process.

 

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.#

The company has filed a series of customary “first day” motions with the bankruptcy court, seeking to maintain its operations during the restructuring process to help facilitate a smooth transition into Chapter 11.

 

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.#

 

John Varvatos Enterprises, the owner of luxury menswear brands John Varvatos Collection and John Varvatos Star USA, and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will sell its business to an existing investor.#