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Creditors seek to push Ellen Tracy into bankruptcy

By
Reuters
Published
today Aug 17, 2009
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By Emily Chasan

NEW YORK (Reuters) - A group of Asian manufacturers filed court papers on Friday 14 August in an attempt to push U.S. women's apparel brand Ellen Tracy into bankruptcy.


Ellen Tracy womenswear summer 2009 - Photo: www.ellentracy.com

The creditors who say they are owed about $3.8 million, filed an involuntary bankruptcy petition against the company in U.S. bankruptcy court in Manhattan.

Ellen Tracy, which sells its clothing brand through stores like Neiman Marcus NMRCUS.UL and Saks (SKS.N), started as a blouse company in 1949, according to its website. An investment group led by Windsong Brands LLC and Hilco Consumer Capital acquired the brand and its associated assets from Liz Claiborne Inc (LIZ.N) in 2008. Hilco representatives were not immediately available to comment.

The creditors based in Shanghai and Hong Kong include, Shanghai K&J Apparel Co, Chinamine Trading, Shanghai Mandarin Fashion Limited and Excellent Jade Limited. They are being represented by Kenneth Rosen, an attorney at Lowenstein Sandler, according to court papers.

Under U.S. law, Ellen Tracy has 20 days to respond to the involuntary bankruptcy petition.

The case is Ellen Tracy LLC, U.S. Bankruptcy Court, Southern District of New York, No. 09-14994.

(Reporting by Emily Chasan; Editing Bernard Orr)

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