Against All Odds Files for Chapter 11 Protection

January 12, 2009
SGB Update

Against All Odds USA Inc., an operator of urban apparel and footwear retail stores, filed in U.S. Bankruptcy Court in Newark, NJ.  The chain has about $38 million in assets, and $35.9 million in liabilities.  The chain operates 64 stores in shopping malls in eight Eastern and two Western states, and had estimated sales of $114 million in 2008, according to court documents.

 

In court papers obtained by Sports Executive Weekly, officials of the Moonachie, NJ-based company said a slowing economy, increased competition and an expansion into a new market with an unfavorable business environment led it to file for protection.


Factoring firm The CIT Group on Dec. 10, 2008 sued Against All Odds in the U.S. District Court of New Jersey for failing to pay $2.4 million owed in accounts receivables. CIT's factoring clients include Phat Farm, Zoo York, Ecko, Enyce and Element Skateboards.


According to the bankruptcy filing, the 20 largest unsecured creditors are owed a total of $10.6 million. Wicked Fashions is listed as the largest unsecured creditor, owed $3.9 million, followed by the factoring firm.

Against All Odds Files for Chapter 11 Protection

January 5, 2009
SGB Executive
by

Against All Odds USA Inc., the operator of urban apparel and footwear filed in U.S. Bankruptcy Court in Newark, NJ attained by SportsOneSource, the chain has about $38 million in assets, and $35.9 million in liabilities.


The chain operates 64 stores in shopping malls in eight Eastern and two Western states, and had estimated sales of $114 million in 2008, according to court documents. The company had about 1,038 employees as of the filing.


In court papers, officials of the Moonachie, NJ-based company said a slowing economy, increased competition and an expansion into a new market with an unfavorable business environment led it to file for protection.


The CIT Group, the factoring firm, on Dec. 10, 2008 sued Against All Odds in the United States District Court of New Jersey for failing to pay $2.4 million owed in accounts receivables. CIT's factoring clients include Phat Farm, Zoo York, Ecko, Enyce and Element Skateboards.

 

According to the bankruptcy filing, the 20 largest unsecured creditors are owed a total of $10.6 million. Wicked Fashions is listed as the largest unsecured creditor, owed $3.9 million, followed by the factoring firm, CIT Group, owed $2.1 million. Other unsecured trade creditors on the top-twenty list included New Era Corp., owed $660,218; Timberland, owed $533,954; VF Outdoor, $338,646; G-III Licensing Division, $296.168; DC Shoes, $284,122; Nike USA, $227,319; G-III Sean John Outdoor, $154,020; Famous Stars and Straps, $152,099; Adidas, $146,440; Burton Snowboards, $146,238; and Bong Hwa USA, $141,793.

 

Against All Odds has approximately 70 stores in New Jersey, New York, Arizona, Florida, Pennsylvania, Massachusetts, Virginia, Maryland, Connecticut, Texas and California. The company was founded in 1996 by Kenny Khym, co-founder of the apparel brand Southpole. While its initial focus was hip hop clothing, it has since diversified into skate and rock n' roll influenced collections.

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