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Monday, July 13, 2009

Urban clothing lines facing uncertain future


Having large debts combined with this economy is really weighing businesses down. Looks like it will be causing a number of clothing lines to have to shut their doors. Kellwood, which is the parent company over Baby Phat. Phat Farm and the XOXO brands may be forced into bankruptcy because of $140 million bond issue due this Wednesday (July 15th). Kellwood has tried to defer the bond payment while restructuring the debt but the largest bond holder, Deutsche Bank, is not trying to hear it and refusing the offer. Russel Simmons had sold Baby Phat and Phat Farm to Kellwood back in 2004 for $142 million cash.
Also, Mark Ecko's Ecko Enterprise has been put on the market while the company is trying to raise cash. They currently have a $170 million dollor debt with CIT Group and manufacturer Li & Fung USA.

For full story click below.

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