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The global fashion business journal

Nov 14, 201912:03pm

Historic brand Sybilla looks for new owner after filing for bankruptcy

The owner of the Spanish brand has begun testing possible buyers and, for the moment, has received interest from investors. However, there is still nothing sure.

Sep 27, 2019 — 8:56am
Silvia Riera/ Daniela García
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Historic brand Sybilla looks for new owner after filing for bankruptcy

 

 

The historic Spanish company led by New York born designer Sybilla Sorondo, is looking for a new owner after filling for bankrupcy. The company Programas Exteriores, owner of the brand, begun testing possible buyers and, for the moment, has received interest from investors. However, there is still nothing sure.

 

The main assets of the company are its three brands: Sybilla, Sybilla Sorondo and Jocomomola. The company already faced a restructuring process at the end of last year, terminating the contracts of most of its workforce and staying with only one worker.

 

On the other hand, the company also owns the licensing business in Japan, which has been the drive of the company for years. The other assets are of patterns and stocks, as sources close to the company have explained to Mds. The amount for which the brand has been valued has not transcended.

 

 

 

 

The company is now at the beginning of its bankruptcy process. The group has recently submitted the settlement plan and is now awaiting approval. This plan includes the sale of the assets and, once the approval is obtained by the creditors, it will be formally activated.

 

The brand is expected to be able to sell its brands in this first phase of the process. In case of not finding an investor, the next step would be to sell its the historical archive of garments.

 

Sybilla faced bankruptcy earlier this year due to the impossibility of coping with the high costs of the company and the difficulty in meeting the times of the viability plan that it signed with the creditors to exit the previous Chapter 11 in 2014.

 

 

 

 

With the fall of Sybilla an entire era of fashion design in Spain ended. The designer excelled in a first wave of Spanish fashion designers who came to attract international attention, such as Antonio Miró, Agatha Ruiz de la Prada, Jesús del Pozo, Adolfo Domínguez or Roberto Verino.

 

After a long period of silence, the designer decided to return after having launched a sustainable weaving project in collaboration with social initiatives in Asian countries. But the comeback meant closing the bankruptcy process that the company had been involved since 2009.

 

For the second stage, the designer had a new start. Sybilla opened again in 2014 with an investment of 2.5 million euros. A year later, the designer received the National Fashion Award.

 

The designer once blamed the lack of financing for the fall of her business. The project started with a very high cost structure and with the commitment to deal with the debt payments of the Chapter 11. Sales, despite their upward trend, did not offset the expenses that the company had to face.

 

The search for an investment partner began with the aim of maintain its growth. And, despite having been close to signing several agreements, no operation ended taking place. A year ago, the company was about to sign with a venture capital fund that finally took a step back.

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