The company listed debt of as much as $100 million and assets of as much as $50 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Manhattan.
The Connaught Group, founded in 1981 by William Rondina, is a New York City-based fashion and design parent company to top women’s direct-sales clothing lines including Carlisle, Per Se and affiliated brand, Etcetera, according to its website.
“The current state of the retail apparel industry and the global economy and capital markets have made it exceedingly difficult for the corporation to continue to fund its operations from cash generated from operations or from raising additional capital,” the company said in a board resolution filed with the court.
The company hired Richter Consulting and Consensus Advisory Services, court papers show.
Connaught Group and its units’ 30 largest creditors without collateral backing their claims are owed about $11 million, according to court documents. Royal Spirit Ltd., based in Hong Kong, is the biggest with a claim of about $4 million. Four affiliates also sought protection.
The case is In re Connaught Group Ltd., 12-10512, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at email@example.com