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Plus-size retailer goes bankrupt after expanding too fast

Plus-size retailer Fashion to Figure has succumbed to bankruptcy, The Post has learned.

After disclosing plans to shrink its chain after it fell behind on rent payments and other bills, as reported by The Post last month, the struggling mall-based retailer filed for Chapter 11 on Monday in Newark, NJ.

“We rolled out mall stores at a time when the world was changing quite a bit,” the chain’s chief executive, Michael Kaplan, told The Post in October. “We are unwinding [the expansion] and that certainly presents challenges,” he said at the time.

In 2013, private equity firm Perella Weinberg invested $18.2 million in the retailer to help fuel its ill-timed expansion.

The Elizabeth, NJ-based company operates 26 stores and listed $1 to $10 million in assets and the same amount in liabilities, according to the filing.

Source: http://nypost.com/2017/11/14/plus-size-retailer-goes-bankrupt-after-expanding-too-fast/

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