The Collected Group Company (TCG), a women’s fashion retail group with brands including Joie, Equipment and Current/Elliott, has filed for bankruptcy protection. The company plans to reduce its debt and give senior lenders additional ownership as it seeks to reverse its fortunes or, potentially. sell off brands.
The retailer plans to use this as an opportunity to negotiate with landlords as it restructures its finances, according to court papers. TCG, like many other retailers, was forced to close stores during the pandemic and tried to improve online sales to survive. Its efforts fell short: retail revenue fell by 85%, and wholesale revenue by 70% in 2020.
Some potential buyers offered to acquire the retailer’s brands prior to the bankruptcy filing, but TCG rejected the bids as too low. However, TCG noted that it would consider selling itself if larger offers surface during the restructuring process.
TCG owes its senior lenders, including owner KKR & Co., more than $185.3 million, according to court records. The reorganization would eliminate $150 million of this debt.