Samsonite's Retail Unit Files for Chapter 11 Protection - StyleList

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Samsonite's Retail Unit Files for Chapter 11 Protection

Filed under: News

Samsonite luggage

Samsonite is trying to pull itself out of the red by filing for Chapter 11 bankruptcy restructuring. Photo: Samsonite.com

In another case of recession downers, Samsonite Corp.'s U.S. retail unit filed for a Chapter 11 petition in the U.S. Bankruptcy Court in Wilmington, DE, reports The Wall Street Journal.

The luggage maker's Chapter 11 filing sought to restructure the company but is not seeking bankruptcy creditor protection.

Samsonite is still promising to pay creditors once the company emerges from the restructuring -- an estimated 45 to 90 days, says the newspaper.

According to the petition, Samsonite is planning to shift focus to its outlet shops and proposes to close up to 84 stores including its high-end stores.

Based out of Mansfield, Mass., the company's secretary and treasurer, Kyle Gendreau said in a prepared statement, "The recession has caused a severe decline in consumers purchasing travel-related goods and the company has responded to this critical situation with a substantial restructuring program," cites the source.

Samsonite Company, which also includes luxury luggage line Samsonite Black Label (acclaimed for collaborations with Alexander McQueen and the more accessible American Tourister), currently employs about 650 people.

Want to know which other retail brands are having a tough time in this economy? Read about fashion and the recession here.
 

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