In Bankruptcy Filing, Plus-Size Retailer Closes 7 Stores, Consolidates Inventory
On Wednesday, a U.S. Bankruptcy Court judge in New Jersey approved an order authorizing a joint venture of SB Capital Group, LLC, and 360 Merchant Solutions, LLC, to conduct "Total Liquidation" sales in each of the Fashion to Figure locations. Millions of dollars of inventory will be liquidated. The "Total Liquidation" began on Wed., Nov. 22.
Founded in New Jersey and headquartered in Manhattan, B. Lane Inc., d/b/a Fashion to Figure voluntarily filed for Chapter 11 protection on Mon., Nov. 13, 2017. At the time of the filing, the plus-size retailer operated 26 stores as well as a highly popular e-commerce site at www.fashiontofigure.com. Immediately following the filing of the Chapter 11, the company closed seven locations and consolidated store inventory into the remaining 19 locations. SB Capital and 360 plan to operate "Total Liquidation" sales in the 19 Fashion to Figure stores, and will operate the e-commerce site as part of the total liquidation.
"Fashion to Figure has exceptional name recognition with the plus-size shopper," said Siegfried Schaffer, a principal of SB Capital Group. "The e-commerce business extended the popularity of the brand to women across the country. We believe the name, coupled with compelling discounts on everything in the stores, will make Fashion to Figure a holiday destination for women seeking quality fashion at exceptional value."
Aaron Miller, a principal of 360 Merchant Solutions, pointed out that "trendy plus-size fashions are in higher demand than the supply. Fashion to Figure helped bring fast fashion to the plus-size shopper. With aggressive discounts for the holiday season, we believe the Fashion to Figure woman will find all of her favorite full-fashion options at never before seen prices."
Fashion to Figure was co-founded in 2004 by brothers Michael and Nicholas Kaplan, great-grandsons of Lena Bryant, the founder of the plus-size clothing chain Lane Bryant. Fashion to Figure has become well known for providing full-fashion options for women's plus-size clothing and related accessories. The store's name was derived from a quote Lena Bryant made in a 1950 interview in which she stated, "You should never ask women to conform their figures to fashion, but rather bring fashion to the figure."
Several factors contributed to the bankruptcy filing and the ultimate decision to close the stores. The company believes a significant impairment occurred from an ill-timed expansion at a time when retail is changing, and many retailers are shrinking their store base.
SB Capital Group, LLC, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructuring and strategic store closing events. With principals who are equity stakeholders in retail enterprises, consumer products, franchising, licensing and real property, SB Capital Group leverages resources and depth of experience to provide services across a wide spectrum of industries. www.sbcapitalgroup.com
360 Merchant Solutions, LLC, is one of the country's leading consulting, business evaluation, asset acquisition and asset disposition firms for wholesalers, manufacturers and retailers. 360 is timely, flexible and creative in offering solutions to companies of all sizes. 360's management and partners have managed thousands of stores and billions of dollars in wholesale and retail inventory. www.360merchants.com