FASHION CHAIN FILES FOR BANKRUPTCY

Fashion chain files for bankruptcy. Mexx is a Dutch fashion chain. It is known for its cool fashions. The chain has 2,800 employees all over the world. It has 170 stores. The company was purchased by Liz Claiborne in 2001. The fashion world is very fickle. The tastes of customers can change on a dime. That is what has happened to Mexx. Especially the Mexx stores in Canada. Mexx Canada ran into problems. The company consulted with a bankruptcy attorney. The result was Mexx Canada has filed a bankruptcy case. The work of the bankruptcy attorney is critical to keep the Canadian operations in business. The bankruptcy filing covers the entire Canadian operation. The chain admitted they have fallen behind in keeping up with the latest fashion trends. It has also run into pricing pressure from the competition. The industry is hoping the stores can survive. The stores are not closing. They will stay open for the very important holiday shopping season. The company is seeking a buyer for the stores. That is the key to keeping them open long term. Business can very competitive. The economy is bad. Shoppers are pinching pennies. This makes the fashion business even tougher. The bankruptcy filing hopefully will ease some the financial burden on the stores in Canada. Clearing away debt will make the stores more attractive to potential buyers. Thanks to the work of the bankruptcy attorneys there is hope. Many employees in Canada rely on the stores to make a living. Many customers also love the stores and all the fashion choices. Many times money issues become too much to overcome. Even for a well known fashion chain. The bankruptcy code is there to offer a lifeline. The bankruptcy filing is the lifeline Mexx Canada has grabbed. Much is on the line. Most hope a fresh start for the stores is now on the horizon.