What: A new fashion casualty of the Covid-19 pandemic

Why it is important: The group owns several contemporary brands that are represented both in their own stores and in department stores. The Covid-19 crisis consequences are already impacting mid-sized fashion groups, which will ultimately reverberate on department stores’ offer and their ability to sell fashion (one of their biggest contributor to margins).

The Collected Group, owner of fashion brands such as Joie, Equipment, Current/Elliott, filed for Chapter 11 Monday 6th April 2021. While it successfully overcame a first restructuring in 2018, due to a failed implementation of a business management system leading to disruptions in sales, this year’s Covid-19 crisis was a blow to the company. Retail revenue fell by 85% and wholesale by 70%, and the situation was worsened by the bankruptcy of sizeable vendors in the US and UK.

The restructuring plan comes after a failed attempt to sell the contemporary fashion group.

Fashion brand owner The Collected Group files for bankruptcy