5 US Apparel Retail Brands Declared Bankruptcy

In December 2014, the clothing brands Deb Shops and Delia*s Inc successively filed for bankruptcy.

In January 2015, Body Central Corp, a leading clothing retail brand, was closed.

January 2015, teenage women's wear and

Wet Seal also filed for bankruptcy.

It is reported that in December 2014, Cache had begun to evaluate strategic alternatives and consider selling them as a whole, but ultimately failed to escape bankruptcy.

Cache currently has assets of 10 million to 50 million dollars and liabilities of 50 million to 100 million dollars.

At present,

Looking for bankruptcy protection, Salus Capital Partners LLC has committed to provide Cache with up to $22 million in bankruptcy protection financing.

In the bankruptcy petition, Cache said that as the electricity supplier quickly occupied the market and consumers' tastes changed, the retail market of the entity store became more and more depressed.

Indeed, many others.

The brand is under tremendous pressure: young consumers are increasingly favouring fast fashion, such as H&M, Forever 21 and Inditex's Zara, and online retailers (such as Amazon) are also very popular.

Cache, 40 years old, is the first women's retailer to introduce European luxury brands such as Armani and Versace to the United States.

This is the second time that the company has gone through bankruptcy, the last in 1986, and then in 1988.

At present, the main stores of Cache are in the high-end shopping centers, and also have 218 outlets stores. They have been losing money in the past 9 quarters, and there are about 2652 employees in 2013.

It is not hard to see that the 5 bankrupt brands are mainly teenagers (heavy Internet users), and their sales depend mostly on large department stores and shopping centers, which are the primary victims of the decrease in the number of passengers on the ground.

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Hugo Boss plans to merge some factories and dissolve cooperation with an agent in the Middle East, which has led Hugo Boss to record a one-time expenditure of up to 1900 million on its books, which has a negative impact on profits.

The two digit growth of retail business is still the main driving force for the growth of group performance.

The Asia Pacific region and Europe are better than the group average.

However, the overall growth rate slowed down in Europe, but the UK and Spain maintained a two digit growth rate.

In the fourth quarter, the market environment deteriorated seriously, and the group did not perform well.

The fourth quarter sales volume was 684 million euros (about 854 million US dollars), which increased by 3% over the same period.

The profit before interest tax depreciation and amortization (EBITDA) was 167 million euros (US $209 million), an increase of 6% over the same period last year. However, in the fourth quarter of 2013, EBITDA grew by 17%.

Women's wear art director, the Chinese women's clothing series designed by Jason Wu, was better than the group average in the fourth quarter, to a certain extent, to make up for the negative impact of the decline in gross margin and the increase in operating expenses.

Hugo Boss said that as of January 1, 2016, the group would reclaim franchise from China, Korea and the Middle East in order to strengthen its control over major emerging markets.

The specific strategic measures are as follows:

In South Korea, Hugo Boss will take over 17 stores of franchised dealer TDCo before March 1st and jointly manage 7 duty-free shops with partners.

In China, Hugo Boss plans to take over 21 Chinese stores responsible for Wenzhou noble department store before April 1st, following the withdrawal of the agency from the Macao rainbow group, a franchise retailer.

After the completion of the acquisition, the total number of Hugo Boss outlets in China will reach 130.

In the Middle East, Hugo Boss has suspended cooperation with a distributor in the Lebanese capital of Beirut, taking full responsibility for the expansion of the retail network in the Middle East.

Hugo Boss plans to set up a distribution company in Dubai, which is responsible for sales in Arabia.

Hugo Boss expressed the hope that in 2015, the Chinese and Korean markets could contribute a percentage point of sales growth to the group, which would have a positive impact on operating profits.

Hugo Boss CEO Claus-Dietrich Lahrs said, "2015 is not easy for Hugo Boss, and the economic environment and political environment are full of uncertainty.

But we are confident that the group will continue to grow in sales. "

Analysts are optimistic about the long-term prospects of Hugo Boss.

They believe that by 2017, the profit margin before interest tax depreciation and amortization of Hugo Boss will reach 25%.

Although the group's share price fell by 3.5% after the performance briefing, Hugo Boss's stock has been the leader of the luxury sector in the past five years in the past six years.