USA: Factory 2-U Files For Chapter 11
The San Diego-based company, which operates 243 stores, received a commitment for $45 million of debtor-in-possession financing from CIT Group Inc's CIT Group/Business Credit Inc and GB Retail Funding Llc, its senior lenders.
Despite the move, an official statement released on Tuesday said Factory 2-U's retail outlets will remain open and the company will continue normal business operations.
The company plans to use its funding, as well as cash flow from operations, to fulfil its obligations during the Chapter 11 process and maintain stock levels.
Meanwhile, the company's interim CEO Norman Plotkin and interim CFO John Swygert have been appointed to their respective positions on a permanent basis.
Help test our new apparel sourcing tool.
- Rana Plaza four years on – Timeline of change
- Why collaboration is key to fashion supply chains
- Industry groups reaffirm commitment to Bangladesh
- Trump and Brexit get a dose of pragmatism
- Using worker surveys to drive supply chain change
- Adidas to digitalise Speedfactory concept
- Nike filed patent for "reinforced denim"
- M&S extends sourcing deal with Lindsey brothers
- Gap unveils five-year sustainable fibres pledge
- US Q1 in brief – Columbia Sportswear, Amazon
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Outdoor performance apparel 2016: A broader perspective