As we previously reported, Liberated Brands has officially filed for Chapter 11 bankruptcy. They're doing this to wrap up their business in an organized way while handing off brand licenses to new partners.
The good news is that Volcom and the other brands under Liberated are going to be just fine. They've already started transitioning to new, well-funded license holders, which means these brands will keep thriving.
According to reports, Liberated’s U.S. stores will stay open as they begin the shutdown process. A liquidation sale is already underway, run by Gordon Brothers Group, so there are some great deals out there before they close for good. The situation with the company’s nine stores in Hawaii is still being figured out.
Liberated Brands mentioned, “The team has put in an incredible effort to keep these brands moving forward." They also noted that with changing consumer habits and economic uncertainty, they had to make some tough decisions.
Luckily, many employees have found new opportunities with the license holders who will take these brands into their next chapter.
To handle the restructuring, Liberated Brands has brought in Kirkland & Ellis, LLP, and AlixPartners LLP, with financial support from JP Morgan.
Despite this bump in the road, Liberated Brands has a strong history in action sports and lifestyle apparel, and while this chapter is closing, the brands they've nurtured are on track to keep evolving under new leadership.