Obi Anyanwu
Apr 12, 2017
Agent Provocateur puts US stores into Chapter 11
Obi Anyanwu
Apr 12, 2017
Agent Provocateur
Inc. on Tuesday filed for Chapter 11 bankruptcy in the US, claiming
assets between $1 million and $10 million and liabilities between $10
million and $50 million. The company aims to protect its US store leases
with the new bankruptcy protection and sell its 12 US stores to Four
Marketing, a division of Four Holdings.
Four Holdings, which represents brands Stone Island,
CP Company and Paul & Shark among others, acquired the UK-based
lingerie company in March for $38 million (£31 million), in what Agent
Provocateur co-founder Joe Corre described as a “disgrace to British
business.”
Agent Provocateur went up for sale at the start
of the year, catching the attention of Terra Firma Capital partners,
former La Senza owner Lion, specialist turnaround investor Endless,
French womenswear brand Etam, and eventual buyer Mike Ashley, owner of Sports Direct. Through Sports Direct, Ashley has a 25% shareholding of Four Holdings.
The
acquisition in March did not include the lingerie company’s assets in
the US, leaving the Agent Provocateur retail locations without an owner
and without access to inventory. The lingerie company was prepared to
liquidate its assets in a Chapter 7 before it struck a deal with Four
Marketing.
The UK company began restructuring in November
under previous owner, 3i. The investment firm wrote down the brand’s
value, citing declining luxury spending, inconsistency in its retail
expansion, and accounting issues. The issues resulted in a quick
departure from Chairman Chris Woodhouse.
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