News that Band of Outsiders was shutting down operations broke in May. The development was followed quickly by a sign-off from designer Scott Sternberg and a clearance sale that hoped to sell off the brand's remaining stock. However, Band is still left with a large amount of clothing and even larger amount of debt, so its creditor, CLCC SA, is auctioning off the brand's remaining clothes along with its intellectual property, WWD reports.
Band was unable to make payments on the $2 million it owes CLCC, so the company seized the brand's assets, which includes over 5,000 pieces of clothing, a source told WWD. It is possible that the entire inventory as well as the intellectual property could be sold as one unit should a bid come in for both assets that is high enough. "They are going to take offers for both assets and individually," a source told WWD. "Depending on a number of factors they’ll look to what’s the highest total."
The auction will take place at the offices of Otterbourg P.C., which represents CLCC legally, sometime next week.
