London Fog Industries Inc

Bobbin, Dec, 1999

London Fog Industries Inc. has filed for protection under Chapter 11 of the U.S. bankruptcy code, following announcements that it had initiated major operational and financial restructuring, including plans for employee layoffs and the closing of 108 retail stores and the liquidation of more than $100 million in inventory.

Commenting on the decisions, William Dragon Jr., president and CEO, stated: "Since I assumed the role as CEO in March of this year, we have reassessed [our retail] initiative and have concluded that we should not be competing directly with our retail partners. As well, the company simply has too much debt. We believe that a Chapter 11 proceeding provides an effective base for restructuring of our debt and the elimination of unprofitable retail stores."

In early October, Hilco/Great American Group said in a press release that a joint venture between it and Schottenstein Bernstein Capital Group LLC was appointed by the U.S. Bankruptcy Court to dispose of more than $100 million in inventory in the 108 stores.