Fashion disaster

Arkansas Business, July 31, 2006

The shell company that operated American Apparel & Accessories Inc. of Little Rock recently filed for Chapter 7 bankruptcy protection and listed $17.04 million in debt.

All of it unsecured.

Here's the part that really stings: Ram Venture Holdings Corp. listed no assets.

Since last year we've been telling you about Ram's financial problems, including a $1 million judgment that Rebsamen Investments Ltd. of Little Rock received against the company.

The bankruptcy filing shows the problem was much worse than we knew.

The company's revenue fell from $2.12 million in 2004 to $1.01 million in 2005. In 2006, Ram didn't make any money, the filing reported.

Some of the biggest creditors included:

* John Lewis, the one-time CEO of Ram and American Apparel & Accessories, who listed a claim for $3.67 million;

* EFO Holdings JBJ Lending Co. of Dallas, $3.16 million;

* Delta Trust & Bank for the balance remaining on a secured loan, $2.29 million;

* Charles Still of Fort Smith, a shareholder, $2.28 million;

* Winnercomm of Tulsa, $1.68 million; and

* Boyd Rothwell of Little Rock, $672,700.

Gen. Wesley Clark, the former Democratic presidential candidate from Little Rock, also has a claim for $210,000. Clark was once on Ram's board of directors but resigned in January 2005.