Court moves Eleven Paris into liquidation
A Paris court officially ordered on March 27 the liquidation of Eleven Paris. The brand had exited a court-ordered bankruptcy protection plan last July, but a new financial setback placed it back in receivership in December.
There was some interest from a number of brands, such as Apostrophe, American Vintage and Majestic Filatures, the latter which ultimately revoked its bid due to price issues. Eleven Paris did not fair well during its most recent court appearance. Dan Cohen, co-founder of the brand, offered to take over five stores (out of 20 total) and keep on twenty employees (of more than one hundred), but the proposal was not approved by the court.
The announced liquidation has led to the closure of all stores and the dismissal of all the company's employees, who were sent home March 28.
Despite the liquidation procedures, the door is still technically open for better offers to come to the table. Eleven Paris still has a chance to be partially acquired through some of its assets, or failing that, as a single brand.
Eleven Paris's troubles first started back in December 2015, when a 96-page collective complaint denounced Eleven Paris' fraudulent use of the images and names of certain artists – Rihanna, Beyoncé, Kanye West, Jay-Z and Pharell Williams – on t-shirts, Sweatshirts, hats, bags and phone cases.
While the matter was amicably resolved, the brand was forced to start bankruptcy protection a few months later and began its restructuring by appointing Thomas Camille (ex-Celio) as CEO. But those efforts were insufficient, even though there is still a chance that another lifeline might surface in the weeks to come.
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