St. Louis, MO (CNS) – Apparel manufacturer Kellwood Co. may file for bankruptcy this week. According to reports, if the St. Louis-based clothes maker can’t come up with payment by Wednesday, it may be forced to file for Chapter 11.
Kellwood, whose brands include Baby Phat, Fabulosity, Vince, Xoxo, and Phat Farm among others, has a $140 million bond issue that is due next week, according to inside sources. If it can’t defer payment or pay by Wednesday, it may file for bankruptcy, New York Post said.
The company was taken private in February last year by Sun Capital Partners for $542 million.
According to the Wall Street Journal, which first reported the issue, Kellwood CEO Mike Kramer blamed Deutsche Bank for changing its mind after first agreeing to an exchange of their bonds for issues with later maturity.
Kramer told WSJ, “They’ve put us in a bad spot and we can’t understand how they could rationalize this. We believe this bond offering benefits everyone.”
Kellwood has about $500 million in debt and $800 million in annual sales, according to WSJ.