GBG USA Inc.

Case No. 21-11369


Case Background

On July 29, 2021, GBG USA Inc., an indirect wholly-owned subsidiary of Global Brands Group Holding Limited, (“GBG” or the “Group”), and 10 affiliated debtors (collectively, the "Initial Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. On December 1, 2021, GBG Sean John LLC filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (collectively with the Initial Debtors, the "Debtors"). The Debtors' cases are jointly administered under Case No. 21-11369.

In conjunction with the filing, GBG USA has entered into an asset purchase agreement (“APA”) with WH AQ Holdings LLC (as purchaser) and Hilco Brands LLC (as guarantor) (together, the “Stalking Horse Bidder”), pursuant to which the Stalking Horse Bidder will serve as the stalking horse bidder in a court-supervised sale process for GBG USA’s Aquatalia brand and business. GBG USA is also pursuing the sale of a substantial portion of its remaining assets, including Ely & Walker, AIRBAND, MagnaReady, Yarrow, b New York and JUNIPERunltd, in accordance with Section 363 of the U.S. Bankruptcy Code and court-approved bidding procedures.

These actions follow the recent sale of the Group’s South Korean Spyder business to Alpha Vista Investment Co., Ltd., the sale of Spyder USA’s inventory and related assets to Liberated-Spyder LLC, and the sale of Frye’s inventory and related assets to ABG Frye LLC.  The recent sales of Spyder and Frye’s inventory and related assets provided GBG USA with cash collateral to meet its immediate liquidity needs and reduce its need for supplemental debtor-in-possession (“DIP”) financing for the Chapter 11 process. GBG USA has further received $16 million in DIP financing from ReStore Capital, LLC to support its additional liquidity needs during the Chapter 11 cases. The DIP facility, coupled with the consensual use of cash collateral, should provide GBG USA with sufficient funding to implement its sale strategy in an orderly manner and to maximize value for all stakeholders.

The Group’s global Brand Management and European wholesale businesses are separate legal entities from GBG USA, not included in this filing, and are continuing to maintain ongoing operations. The Group has and continues to take measures to help improve performance, reduce the cost base and improve working capital of the European wholesale business. The Brand Management business remains robust and profitable.

GBG USA has also filed a number of customary motions with the Court seeking authorization to support its operations, including authority to continue payment of employee wages and maintain healthcare benefits and other relief measures customary in these circumstances.

Important Information & Dates

Plan and Disclosure Statement

On December 18, 2021, the Debtors filed their Joint Liquidating Chapter 11 Plan (the "Plan") and the Disclosure Statement related thereto (the "Disclosure Statement"). A combined hearing to consider, among other matters, the adequacy of the Disclosure Statement and confirmation of the Plan (the "Combined Hearing") was held before the Honorable Michael E. Wiles commencing on January 28, 2022 at 11:00 a.m. (prevailing Eastern Time), and the Effective Date of the Plan occurred on February 24, 2022.

Please click below to view and download the Plan, the Disclosure Statement and related documents:

Plan & Disclosure Statement

Deadline to File Claims

The Bankruptcy Court has set the following deadlines for filing proofs of claim against the Debtors:

  • All Other Debtors' General Bar Date: November 3, 2021, at 5:00 p.m. (ET)
  • All Other Debtors' Governmental Bar Date: January 25, 2022, at 5:00 p.m. (ET)
  • GBG Sean John LLC General Bar Date: January 18, 2022, at 5:00 p.m. (ET)
  • GBG Sean John LLC Governmental Bar Date: May 31, 2022, at 5:00 p.m. (ET)

Click on "Submit a Claim" above to download a proof of claim form and for more information regarding filing a claim against the Debtors.

First Day Hearing

A hearing on the Debtors' First Day Motions was held on July 30, 2021 before the Honorable Judge Michael E. Wiles.

Please click below to view and download the First Day Motions and First Day Orders:

First Day Motions

First Day Orders


Dates

DonwlaodClaim
February 24 2022 Effective Date Statement / No... Add to Calendar
May 11 2022 Omnibus Hearing 10:00 a.m. (ET) Notice of Agen... Add to Calendar
June 7 2022 Omnibus Hearing 10:00 a.m. (ET) Motion for Omn... Add to Calendar
+ SHOW ALL DATES
July 29 2021
Petition Date Add to Calendar
July 30 2021 11:00 a.m. (ET)
August 31 2021 2:00 p.m. (ET)
August 31 2021 2:00 p.m. (ET)
September 9 2021 10:00 a.m. (ET)
September 21 2021 11:00 a.m. (ET)
September 21 2021 11:00 a.m. (ET)
September 23 2021 10:00 a.m. (ET)
October 5 2021 10:00 a.m. (ET)
October 13 2021 11:00 a.m. (ET)
October 19 2021 11:00 a.m. (ET)
November 3 2021 5:00 p.m. (ET)
November 16 2021 11:00 a.m. (ET)
December 3 2021 11:00 a.m. (ET)
December 15 2021 2:00 p.m. (ET)
December 16 2021 10:00 a.m. (ET)
December 22 2021 1:00 p.m. (ET)
January 18 2022 5:00 p.m. (ET)
January 25 2022 11:00 a.m. (ET)
January 25 2022 5:00 p.m. (ET)
January 28 2022 11:00 a.m, (ET)
February 3 2022 10:00 a.m. (ET)
May 31 2022 5:00 p.m. (ET)
February 24 2022
May 11 2022 10:00 a.m. (ET)
June 7 2022 10:00 a.m. (ET)

Parties

Debtors' Counsel

  • Willkie Farr & Gallagher LLP

    787 Seventh Avenue
    New York, NY   10019
    https://www.willkie.com/
    Phone: 212-728-8000

    Rachel C. Strickland
    Andrew S. Mordkoff
    Ciara A. Copell

United States Trustee and Court Information

  • United States Bankruptcy Court

    Southern District of New York
    One Bowling Green
    New York, NY   10004-1408
    http://www.nysb.uscourts.gov
    Phone: 212.668.2870



  • United States Trustee

    U.S. Federal Office Building
    201 Varick Street, Suite 1006
    New York, NY   10014
    http://www.usdoj.gov/ust/r02
    Phone: 212.510.0500
    Fax: 212.668.2255



Debtors

Case Number Debtor Name Petition Date
Case Number 21-11369 Debtor Name GBG USA Inc. Petition Date July 29, 2021
Case Number 21-11372 Debtor Name Jimlar Corporation Petition Date July 29, 2021
Case Number 21-11370 Debtor Name GBG North America Holdings Co., Inc. Petition Date July 29, 2021
Case Number 21-11373 Debtor Name Homestead International Group Ltd. Petition Date July 29, 2021
Case Number 21-11374 Debtor Name IDS USA Inc. Petition Date July 29, 2021
Case Number 21-11375 Debtor Name MESH LLC Petition Date July 29, 2021
Case Number 21-11376 Debtor Name Frye Retail, LLC Petition Date July 29, 2021
Case Number 21-11377 Debtor Name Krasnow Enterprises, Inc. Petition Date July 29, 2021
Case Number 21-11379 Debtor Name Pacific Alliance USA, Inc. Petition Date July 29, 2021
Case Number 21-11371 Debtor Name GBG Spyder USA LLC Petition Date July 29, 2021
Case Number 21-11378 Debtor Name Krasnow Enterprises Ltd. Petition Date July 29, 2021
Case Number 21-12016 Debtor Name GBG Sean John LLC Petition Date December 01, 2021