Collected Group Files for Bankruptcy With Deal That Would Salvage KKR’s Stake

The fashion company behind the Joie, Current/Elliott and Equipment labels was looking for a buyer when the pandemic hit. The Collected Group filed for bankruptcy protection Monday to cement a rescue plan backed by the private-equity firm that controls it, KKR & Co.

 

The Chino, Calif.-based company is the design, distribution and retail force behind the Joie, Current/Elliott and Equipment fashion labels.

The private-equity giant is Collected’s largest owner and secured lender, and is backing a turnaround plan that would leave landlords and other unsecured creditors that are owed an estimated $35.5 million unpaid, according to bankruptcy court papers.

Collected already has vacated its retail stores and is hoping to wrap up its bankruptcy reorganization in the next six weeks, court papers say.

The fashion company is one of many that already was struggling when Covid-19 laid waste to the retail sector.

 Source: Wall Street Journal

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