New York, NY (CNS) – Los Angeles-based KP Fashion Co. filed for Chapter 7 bankruptcy Wednesday in New York. The Kira Plastinina collection was designed by its 16-year-old namesake, whose father, Sergei Plastinin, bankrolled the concept.
The firm that operates 12 Kira Plastinina stores in the U.S. is liquidating. The bankruptcy filing on December 31 in a Manhattan bankruptcy court listed $9.7 million in assets and $54.4 million in debt, reports WWD Business.
The company had 12 U.S. stores, six in the L.A. area: Beverly Center, Americana at Brand, Beverly Drive, Robertson Ave., Third Street Promenade and Shoppingtown Topanga.
Market analysts are blaming the fall of the chain to the declining fortunes of the designer’s father, who reportedly invested in the Russian stock market. However the company has 40-plus Plastinina stores in the Russian Federation and 10 sites in the Ukraine, which are not affected.
Its five units in Kazakhstan are also not closing but the stores in the U.S. closed on December 19, seven months after the first one opened. The company’s U.S. website shows most clothes at a 75 percent discount.