admin Multi-label wedding gown company JLM Couture has announced plans to file for restructuring to safeguard its assets and continue operations.
The decision comes as the design and manufacturing company faces limited debt due to several external circumstances, including its legal battle with former wedding dress designer Hayley Paige Gutman and pressure from legacy creditors, together with possible issues from landlord-tenant disputes in New York City made worse by the pandemic.
Restructuring “most strategic move” to protect JLM Couture’s assets and operations
Seen as the “most strategic move to protect” the company’s operations and assets, according to a company spokesperson, JLM Couture foresees voluntarily filing for reorganization under Subchapter V of Chapter 11 of the United States Bankruptcy Code.
As the company has minimal bank debt and is restructuring with its vendors and creditors, JLM Couture foresees that its business will continue as usual during the court-supervised process, including efforts to fulfill customers’ needs and expectations.
Despite the changes, JLM Couture states it remains dedicated to providing high-quality designs and is hopeful the restructuring will “fortify its position” and enable it to “return to a position of strength within the wedding gown industry.”
