Jeweler Alex and Ani Files Bankruptcy After Rapid Expansion

Pop Fashion
|

Automatic TRANSCRIPT

Jewelry company alex and ani has filed for chapter eleven bankruptcy protection the company which was known. Pretty much only for bangle bracelets. The company blames cova mostly and it's clear that's a factor like in twenty twenty. Their revenue fell forty percent but his company's financial struggles started long before this pandemic began. And i'm just going to tell you a tiny bit about things that happened because this has multiple layers so a couple of things that became roadblocks for this company. So in december of twenty eighteen bank of america cut off the company's line of credit. Oh and the day ah-ha yup and the following summer alex and ani sued for gender discrimination in claim that it had been treated differently because it was led by a woman that suit which was dropped a month after it was filed said that sales had declined around eighty million and the alex an anti couldn't pay vendors so there's a red flag even if they like settled this Alleged discrimination claim. There's a clear financial disconnect here. There was also illegal. Back and forth last year between the company's founder carolyn rafi allen and investment firm lion capital which owns the majority of the company. Apparently she borrowed five million dollars from line capital and never paid it back shift. You just sometimes forget to pay back five million lisa. She just forgot and to resolve the legal battle between them. She sold her remaining stake in the company to them which was thirty five percent. Holy mess so as of last year. The founder of this company was no longer involved so the company is also in a whole like metric ton of debt which is really what it comes down to like ultimately when you're filing for bankruptcy doesn't so much that you need to figure out they owe money to a bunch of landlords which makes sense you know malls and stuff during the pandemic they also more than one hundred seventy five thousand dollars to an entire town in rhode island

Coming up next