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Published
Jan 16, 2017
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Bibhu Mohapatra files for Chapter 11 bankruptcy

Published
Jan 16, 2017

New York City-based designer Bibhu Mohapatra this week filed for Chapter 11 bankruptcy protection citing liabilities of up to $1 million in debt.


Bibhu Mohapatra after his spring 2017 runway show at NYFW in September


 
The designer told the Wall Street Journal that he plans to continue operations and he feels the debt restructuring will make his company more attractive to investors. Mohapatra also said the restructuring will allow him to start a more affordable second collection.
 
Mohapatra founded his namesake label after working for J. Mendel. His designs have been worn by the likes of Michelle Obama, Gwyneth Paltrow, Lupita Nyong’o and Glenn Close, and he was one of the finalists for the 2014 International Woolmark Prize.

The past two years have been a tumultuous time for fashion designers, brands, and retailers resulting in many bankruptcies and closures. Dior Homme Creative Director Kris Van Assche shut down his namesake label in 2015 followed by Jonathan Saunders, who shut down operations prior to joining DVF, and menswear brand CWST.
 
Retailers American Apparel, Karmaloop, Sports Authority, PacSun, Aeropostale, The Limited, and Nasty Gal all filed for bankruptcy in the past two years for debt restructuring or to seek potential buyers. Tamara Mellon, Quiksilver and Yogasmoga also filed for bankruptcy protection.

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