The Covid pandemic created some unique situations for retailers. Some businesses thrived because people needed what they were selling to get them through extended periods of lockdown or at least spend more time at home.
These were banner days for off-brand toilet paper and paper towel brands. Consumers needed those products, and when you don't have toilet paper, you're not going to be as picky about brands.
These pandemic-related boom times weren't limited to paper towel and toilet paper brands. It was nearly impossible to purchase home exercise equipment because for a time in most of the United States, gyms were closed or operating at very limited capacities.
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Covid sparked a golden age for companies like Peloton (PTON) – Get a free report which offered premium products that allowed people to exercise from home. That company also benefited from higher-paid workers not losing income during the pandemic but having fewer places to spend it.
That same trend also affected casual clothing. Many women wore leggings and yoga pants during work-from-home days, while men donned sweatpants and joggers. When there was no reason to dress up, people opted for comfort.
This drove huge demand not only in the home exercise equipment space, but also in sports and leisure apparel. Now, a leading women's sportswear brand has decided to sell its assets and intellectual property through a process called “general divestiture.”
In a general assignment, a company hires a company to liquidate its assets in accordance with state law in an expedited process. Closing the business that way generally saves attorney fees compared to a Chapter 11 or Chapter 7 filing.
Image source: Platoon.
Bandier puts its assets up for sale
Bandier, which will continue to operate during the sale of its assets, is described as follows on its website:
“We believe you should never sacrifice your style for performance. We believe you should feel good in the clothes you work out in. And above all, we believe fitness should be fun.”
The company hired DSI Assignments to handle its overall assignment process, which will include its intellectual property (things like its brand and website, as well as its assets, including but not limited to inventory and accounts receivable), the company shared in a statement. of November 29). news release, according to a Wednesday news release.
“Bandier is still operating and the decision to sell was made by the board of directors due to a variety of headwinds, including supply chain issues,” said Steven Victor of DSI Assignments. Retail Diving.
Bandier has already started the process
Bandier laid off 52 workers on Nov. 22, according to a WARN notice it filed with the New York State Department of Labor. The company cited “economic reasons” behind the decision. The company said in that notice that all employees were expected to be rehired under a new business entity, but that may no longer be the case since any decision on the matter would depend on the company's new owner.
There is also no guarantee during the general transfer process that Bandier will be sold in full. It could be sold in parts if that would produce the best return for the company's creditors.
The company operates five retail stores along with its website. He also began selling select collections on Amazon. (AMZN) – Get a free report in 2021.
“Bandier's private collection, All Access, is packed with activewear essentials designed to give fitness fanatics the ultimate workout experience, including the best-selling Center Stage leggings, Front Row bra, and Chorus bra. With “With a focus on timeless design, the WSLY label features transitional pieces like the repeatedly sold-out Rivington Tank along with the cult favorite Ecosoft Classic Hoodie + Jogger,” the company shared at the time.
