Breaking News. Rock & Republic May Be Forced to Liquidate

December 10, 2010 • Breaking News, Fashion


Is this the end of Roack & Republic?

The New York Post has just reported that Rock & Republic, which has already declared bankruptcy, is facing liquidation after a $60 million deal to save it has collapsed.

The Post reported exclusively in September that New York investment firm Bluestar Alliance had agreed to buy the company out of Chapter 11 bankruptcy in a plan that would have allowed Michael Ball, founder and questionable businessman, to continue running the creative end of the brand. But Ball, who has been accused of everything from sexual harassment to blackmail to hurling a cocktail glass at a bar patron, refused to be flexible in the negotiations, even as Rock & Republic's profits took a turn for the worse throughout the fall.

"In any negotiation, [Ball] is always concerned, first and foremost, about himself," according to one source close to the situation. "But he didn't do himself a favor this time." Ball reportedly demanded an outsize stake in the reorganized Rock & Republic, as well as a lavish salary as the company's creative chief.

But investment firm Bluestar had trouble raising the cash necessary to complete the deal, with a price tag that didn't match the struggling status of the company. With claims by creditors increasing this fall and denim licensees refusing the high manufacturing fees, it seemed almost impossible to complete the deal. With no alternate deal currently in the works, the label will likely be auctioned off in court.

Some big apparel firms, like VF Corp., the maker of Lee and Wrangler jeans and Seven For All Mankind, were  interested in buying the fledgling Rock & Republic, but only if Ball were to leave the company. Now he's literally run his own company into the ground. But perhaps, there may still be a silver lining for Rock & Republic since, according to an inside source on the matter, "Now, everybody will show up to this auction."

Article Source: The New York Post

Photo Source:

-Alia Rajput

See the Top Ten Summer 2016 Trends for Women Over 40

Tags: , , , , , , , , ,

Leave a Reply