GBG USA Inc.
Case No. 21-11369
On July 29, 2021, GBG USA Inc., an indirect wholly-owned subsidiary of Global Brands Group Holding Limited, (“GBG” or the “Group”), and 10 affiliated debtors (collectively, the "Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The cases are jointly administered under Case No. 21-11369.
In conjunction with the filing, GBG USA has entered into an asset purchase agreement (“APA”) with WH AQ Holdings LLC (as purchaser) and Hilco Brands LLC (as guarantor) (together, the “Stalking Horse Bidder”), pursuant to which the Stalking Horse Bidder will serve as the stalking horse bidder in a court-supervised sale process for GBG USA’s Aquatalia brand and business. GBG USA is also pursuing the sale of a substantial portion of its remaining assets, including Ely & Walker, AIRBAND, MagnaReady, Yarrow, b New York and JUNIPERunltd, in accordance with Section 363 of the U.S. Bankruptcy Code and court-approved bidding procedures.
These actions follow the recent sale of the Group’s South Korean Spyder business to Alpha Vista Investment Co., Ltd., the sale of Spyder USA’s inventory and related assets to Liberated-Spyder LLC, and the sale of Frye’s inventory and related assets to ABG Frye LLC. The recent sales of Spyder and Frye’s inventory and related assets provided GBG USA with cash collateral to meet its immediate liquidity needs and reduce its need for supplemental debtor-in-possession (“DIP”) financing for the Chapter 11 process. GBG USA has further received $16 million in DIP financing from ReStore Capital, LLC to support its additional liquidity needs during the Chapter 11 cases. The DIP facility, coupled with the consensual use of cash collateral, should provide GBG USA with sufficient funding to implement its sale strategy in an orderly manner and to maximize value for all stakeholders.
The Group’s global Brand Management and European wholesale businesses are separate legal entities from GBG USA, not included in this filing, and are continuing to maintain ongoing operations. The Group has and continues to take measures to help improve performance, reduce the cost base and improve working capital of the European wholesale business. The Brand Management business remains robust and profitable.
GBG USA has also filed a number of customary motions with the Court seeking authorization to support its operations, including authority to continue payment of employee wages and maintain healthcare benefits and other relief measures customary in these circumstances.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
Rachel C. Strickland
Andrew S. Mordkoff
Ciara A. Copell
United States Trustee and Court Information
United States Bankruptcy Court
Southern District of New York
One Bowling Green
New York, NY 10004-1408
United States Trustee
U.S. Federal Office Building
201 Varick Street, Suite 1006
New York, NY 10014
|Case Number||Debtor Name||Petition Date|
|Case Number 21-11369||Debtor Name GBG USA Inc.||Petition Date July 29, 2021|
|Case Number 21-11372||Debtor Name Jimlar Corporation||Petition Date July 29, 2021|
|Case Number 21-11370||Debtor Name GBG North America Holdings Co., Inc.||Petition Date July 29, 2021|
|Case Number 21-11373||Debtor Name Homestead International Group Ltd.||Petition Date July 29, 2021|
|Case Number 21-11374||Debtor Name IDS USA Inc.||Petition Date July 29, 2021|
|Case Number 21-11375||Debtor Name MESH LLC||Petition Date July 29, 2021|
|Case Number 21-11376||Debtor Name Frye Retail, LLC||Petition Date July 29, 2021|
|Case Number 21-11377||Debtor Name Krasnow Enterprises, Inc.||Petition Date July 29, 2021|
|Case Number 21-11379||Debtor Name Pacific Alliance USA, Inc.||Petition Date July 29, 2021|
|Case Number 21-11371||Debtor Name GBG Spyder USA LLC||Petition Date July 29, 2021|
|Case Number 21-11378||Debtor Name Krasnow Enterprises Ltd.||Petition Date July 29, 2021|