Danier Leather Enters Insolvency After $27 Million in Losses
By Kate Musgrove
February 5, 2016Danier Leather has announced that they've entered insolvency. Insolvency is intended to protect the company from creditor lawsuits as it seeks a buyer. It's not bankruptcy, but if they can't find a buyer, that will be their next step.
Danier Leather lost $27 million between 2014-2015, with nearly $20 million of that loss occurring in 2015 alone. They have stated that they expect to lose even more money in 2016, although they specify that they have enough cash to keep their stores open and pay staff as they work towards a solution.
What do you think went wrong for Danier Leather? Jeffery Wortsman, the current CEO, said in September 2015 that Danier was "not aligned to current fashion trends" which led to significant sales decline and a build-up of unsold inventory.
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View allThat being said, I think the brand is stuck in between being a cheap brand or an expensive brand. They have sales often, so no one ever wants to buy anything at full price and to consider them a luxury brand. However, even on sale their jackets would be $100-$400, which is too expensive for a cheap buy.
I hope they make it because they're of decent quality.
Hoping they can pull through