Newport Beach-based Banks Journal will look to clear through its inventory as it launches a Black Friday sale on Tuesday following its petition last month in U.S. bankruptcy court to liquidate.
The men’s and women’s brand filed for bankruptcy on Oct. 24 after co-founder Rama McCabe abruptly announced to U.S. customers the company’s intent to shutter operations Oct. 13.
Banks Journal’s online European business, however, has continued operations and began shipping to the U.S. last month. The company began running a 20% off promotion with a coupon code sent to newsletter subscribers in confirming the online shop would service the U.S.
The latest push to clear inventory promises as much as 70% off online store merchandise, with the company calling the Black Friday promotion its “biggest online sale ever.”
The promotions come as some retailers Stateside look to also push through Banks Journal inventory by cutting prices as the company’s local presence winds down. Retailers and brands across industry segments have been aggressive since last year in pushing promotions as they’ve sought to bring inventory down to more normal levels. But the markdowns have also been damaging to some businesses as consumers flock to deals over regular priced merchandise.
Banks Journal reported $93,558.77 in inventory to the bankruptcy court.
The company’s closure in the U.S. came without warning or any indication of business troubles in the lead up to its bankruptcy filing.
The company’s parent listed assets of $9.93 million and liabilities of $9.63 million in its Chapter 7 liquidation papers.
Banks Journal had gross revenue of $6.12 million for calendar year 2022, according to court documents. In 2021, the business had gross revenue of $3.31 million.
For the 2022 tax year the company reported $8.85 million in combined federal and state net operating losses.
Among the leases Banks Journal held was one for its former store at the Row DTLA, which was set to expire in 2025, and one for the company’s former store at the Surfjack Hotel & Swim Club in Waikiki, which was set to expire in 2026.
The filing also mentions a sexual harassment claim against McCabe by a former employee. The case was filed in Los Angeles Superior Court and is marked as closed in the bankruptcy documents.
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