Chris Kampe discusses Chapter 11 filing for Signature Styles with Multichannel Merchant
June 8, 2011 - Chris Kampe, Managing Director of Tully & Holland's Retail Group commented on the Chapter 11 filing for Signature Styles, a division of private equity firm Patriarch Partners, which includes Spiegel Brands, Newport News and Shape FX apparel titles.
Chris Kampe notes that Spiegel Brands has been struggling for years. Golden Gate Capital bought it out of bankruptcy in 2004 and sold it to Granite Creek Capital in mid-2008 just as the recession took hold. Again, the company fell into deep distress. Patriarch Partners acquired the business betting on the long-term strength of the brands and the strategic move towards an internet retail model vs. the traditional catalog model.
As evidenced by the filing, the plan was less than successful however it will rid the business of its liabilities and allow for a new attempt at profitability.