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Alan Martin is a partner in the Finance and Bankruptcy Practice Group in the firm's Orange County office.

This post originally appeared on the Council of Fashion Designers of America website, CFDA.com.

Before the COVID-19 outbreak, fashion retail already faced difficult times with numerous bankruptcies, such as Barneys, Sonia Rykiel, Roberto Cavalli and Diesel.  Now with COVID-19, fashion retail confronts a “perfect storm” — the hurricane of the disruption of brick and mortar retail caused by omnichannel retailing and the Nor’easter resulting from the shutdown of all retail stores and lockdown of consumers in the US.  It is anticipated that retail bankruptcy filings will proliferate in the wake of COVID-19 and, as a result, it is important to have a basic understanding of the bankruptcy process and concepts for fashion businesses, including Chapters 11 and 7, critical vendor status, how to file a claim, and what strategies can be used to sell to an entity once it has filed for bankruptcy.
Continue Reading Fashionista’s Guide to Bankruptcy: What Every Designer Needs to Know to be Protected in Times of Economic Uncertainty

This post originally appeared on the Council of Fashion Designers of America website, CFDA.com.

You’ve worked so hard to get your foot in the door with that prized retailer, striving mightily to please them. They’ve finally supported your line and you just shipped them a big order for Fall 2020. But that same retailer has now filed Chapter 11. What can you do to protect your inventory in the bankruptcy proceeding? Should you continue to do business with the retailer during the bankruptcy? And what can you do to avoid these problems in the future with other retailers? This article will briefly address these questions and provide some basic strategies to help guide the designer/manufacturer in these difficult times.
Continue Reading Protecting Your Inventory and Getting Paid