Liberated Brands has announced it has filed for a Chapter 11 bankruptcy and plans to close more than 100 retail locations across the United States.
In its bankruptcy filing, Liberated CEO Todd Hymel stated that the company is closing its U.S. stores due to a “dramatic rise in interest rates, persistent inflation, and supply chain delays,” which added “significant pressure” to Liberated’s costs and revenue.
Hymel also admitted that Liberated can no longer compete with fast-fashion rivals, saying consumer trends are turning away from high quality clothing stores to “cheaply, quickly, and easily order low-quality clothing garments.”
Liberated Brands said in a statement, “The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll. Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future.”
The Chapter 11 filing does not impact the future of Quiksilver, Billabong, and Volcom, who have already transitioned to new partnerships.
By CEO NA Editorial Staff
