Photo: FreddyO archive.
This has to be a really sad day for people in fashion. I was on one of my favorite web sites Crunktastical.net and saw this story and new I had to post it. The world of hip-hop fashion may soon to take a hit in this difficult economy. According to “The Wall Street Journal,” Kellwood, the parent company for Baby Phat, Phat Farm and XOXO, could be forced into bankruptcy. A 140-million-dollar bond issue is due to mature on Wednesday. Kellwood is trying to restructure its debt and defer the bond, but bond holder Deutsche Bank isn’t cooperating. Kellwood purchased Phat Farm and Baby Phat from hip-hop mogul Russell Simmons for 142-million-dollars in 2004. The company currently has more than 500-million-dollars in debt and 800-million-dollars in annual sales.
Mark Ecko’s Ecko Enterprises is also busy trying to satisfy creditors. The company is headquarted in a 275-thousand square-foot New York office space that costs nine-million-dollars per year. Ecko has placed the space on the market with the hopes of paying off his company’s 170-million-dollar debt to CIT Group and Li & Fung USA.
Leave a Reply