First Jennifer Lopez is putting a halt to her Sweetface clothing line, the vibe shuts down and now BabyPhat is in trouble.
Kellwood Co., the owner Baby Phat, Phat Farm, Sag Harbor and XOXO brands, have fallen on hard times.
The biggest issue they are facing right now is inability to meet a big debt payment.
Phat Fashions, which was co-founded by Russell Simmons was sold to Kellwood for $140 million in 2004, plus performance incentives. Kimora Simmons retained her position as “principal creative arbiter” for Baby Phat.
“Kellwood Co., one of the largest apparel manufacturers in the U.S., could be forced to file for bankruptcy soon, after it failed to reach an agreement with its bondholders, people familiar with the matter said.
The St. Louis-based company, which employs roughly 2,000 people and owns such popular clothing brands as Phat Farm, Sag Harbor and Vince, was taken private in February 2008 by buyout firm Sun Capital Partners for $542 million.
The twin effects of a heavy debt load and a sharp drop in consumer spending have crushed the company’s financial results.”
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