Global Brands Group ordered to wind down business by court

Hong Kong-based Global Brands Group is shutting down its operation after a court order. In a statement, the company said the Bermuda Court ordered the company to be wound up and the court appointed John C. McKenna of Finance & Risk Services in Hamilton, Bermuda to oversee the disposition of its property. A report said Global Brands Group had asked the courts in the British Overseas Territory to appoint a provisional liquidator to help restructure two months ago.

Global Brands Group positions itself as one of the world’s leading branded fashion accessories, footwear, and apparel companies. It designs, develops, markets and sells products under an array of owned and licensed brands, such as Fiorelli, Sean John, AllSaints, Navigare, Dirk Bikkembergs, Dimensione Danza. However, on 2 November, it sold the Fiorelli brand for just about US$3.3 million to Centric Brands International Europe. The company said selling Fiorelli was to repay part of its existing bank debt.

Previously, a German subsidiary of the company filed for insolvency. Although the group continued to operate its Europe wholesale business in the ordinary course, the operating entities were experiencing tight liquidity. Its stocks were also suspended from trading as it failed to announce its annual results. After several delays, on 4 November, the company said its revenue for the six-month period ended on 30 September 2021 was just US$173 million, down from US$290 million in the same period in 2020 or 40.3%. The operating loss for the six-month period in 2021 was US$99 million compared with a loss of US$69 million the year before, equivalent to a 43.5% decrease.

Meanwhile, in July, former footballer David Beckham was reportedly planning to take full control of his product licensing joint venture from Global Brands Group.

Global Brands Group was established in 2005 by Hong Kong company Li & Fung, focusing on private label and branded apparel. It owned and ran brands in men’s and women’s fashion, footwear and accessories, as well as children’s wear. In 2016, it created a joint venture with Creative Artists Agency’s brand management division. In addition to David Beckham, it also manages brands including Coca-Cola and Crayola, according to its website.

In July 2016, Global Brands Group and Creative Artists Agency's brand management divisions created the joint venture CAA-GBG Global Brand Management Group. Both companies worked with brand owners, retailers, and manufacturing partners to engage new consumers by extending brands into new geographies and product categories, according to its website.

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