In recent news, Kellwood Co. announced that it was unable to renegotiate and extend its bond issue that matured Wednesday. As a result, the company’s board extended the deadline for acceptance of a proposed debt exchange until midnight Friday, July 17th.
Kellwood Co. is on the largest apparel manufacturers in the United States. It has just recently negotiated a forbearance agreement with its banking group, a team led by Bank of America. This would allow Kellwood to examining any options that could reinforce the company’s balance sheets.
Kellwood is the owner of such popular clothing lines as Phat Farm, Sag Harbor and Vince. In its current state, the company may be forced to file for bankruptcy protection should it be unable to broker an agreement with its various bondholders. This will present some unique challenges for the apparel company.
Back in February of 2008, Kellwood was taken private by the buyout firm Sun Capital Partners Inc. for $542