Lambertson Truex bankcrupt due to "reduced demand"

NEW YORK, March 5 (Reuters) - Lambertson Truex LLC, a maker of designer handbags, filed for Chapter 11 bankruptcy protection on Thursday because of reduced demand for its products.

Story:

I wonder how significant the "significant amount of debt" is. Maybe they shot themselves in the foot by opening retail stores?

I can see how this current economy would hurt brands like Truex the most. They have very little brand loyalty among women, they are like what some lady would buy as the 4th or 5th new bag for the season, not the first or second. The first and second choices are what are doing okay.

Per Samsonite's Web Site:
In fiscal 2007, Samsonite acquired a controlling stake in this unique American luxury accessories house. The strategic partnership is an important milestone for Samsonite, significantly strengthening our luxury presence and positioning the company to build and develop the exclusive Lambertson Truex brand on a global scale. As testament to this, we opened our first Lambertson Truex retail boutiques earlier this year in Los Angeles and New York, bringing the brand to a wider audience of discerning consumers.


Pretty fast transition from "important milestone" to bankruptcy.

what a shame

I hadn't heard of them until fairly recently, when I purchased a watch travel case through Gilt. The materials and workmanship are truly beautiful. I would not have hesitated to buy from them again.

LT makes awesome bags and this is one tragic news.

Mack..Thanks for the post..LT really has beautiful leathergoods.They had a great start and
did quite well at retail but with this economy and non-stop spending by that group...
Just a matter of time.

hmm... closing sale????

damn, I have some of their wallets, and the leather and handwork is wonderful. My cardcase lives through even the worst beatings. Great price to quality ratio. What a shame.

Originally Posted by Teger

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hmm... closing sale????

Exactly what I'm wondering.

Originally Posted by beansprouts1

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. Great price to quality ratio. What a shame.

Very true! I really hoped they would make it. Liked a lot of their stuff but interestingly never ended up purchasing anything from them! Like a previous poster already stated, they arent on anyones top favorites list. Anytime I saw something I liked from them I found something else I liked just a slightly bit more somewhere else. The only catch to that is the Brand i chose over them always had a higher price tag for similar quality.

As this is a ch11 filing, there's good chance given the fact pattern here (IIRC, it was an LBO, but with a coporate (Samsonite) acting as the financial sponsor) that this on the way to a balance sheet restructuring and a reset of the scale of the operation rather than ceasing operations entirely. Even in this crazy market, there are plenty of folks who are able (both intellectually and financially) to differentiate a fundamentally sound business which got out over its skis too far and is over-levered (a balance sheet issue - debilitating, but not fatal in most circumstances) versus a company which is simply a poor business (fatal in most cases, certain death in this mkt). I don't know the specific facts here, but likely the existing equity holders (Samsonite + others) will have their equity wiped out, some of the existing (pre-petition) debt holders may have their investments impaired in some way (won't get full return of capital they put in / loaned) and some of the debt holders (the more junior bunch) will become the new equity (taking equity in exchange for their debt), perhaps alongside someone who is willing to infuse some cash into the business. The next six months will involve lots of lawyers and restructuring advisors arguing about exactly where those lines are drawn. But, if the company is viewed as being fundamentally a sound and viable business, meaning people will argue over where to draw the debt / equity lines, versus simply shutting things down, it should continue to exist and produce goods (albeit under far more difficult terms than previously).

richard lambertson was once the design director at Bergdorf goodman's .
great taste level. sadly the big stores are starting to cut out that position. so who will decide the direction a store takes in terms of merchandise for sale?

I've had tons of LT bags (probably 10 or more); really sorry to hear this. They are one of my favorite under-the-radar brands and also had perhaps the best quality-to-price ratios of anybody, especially for their men's bags.

BUT, I can also see as somebody mentioned above how they wouldn't fare well in a bad economy. They make outstanding simple "basic" bags... not seasonal type stuff and they were never well-known enough to go on name-recognition. SO, when you get a few from the major categories (a briefcase, a tote, a messenger, etc.) you're pretty much set. It's not the kind of thing you wait each season to get a new one.

Anyway, sad to hear that yet another of my favorites is disappearing.