What Small Brands Can Learn From the Barneys New York Bankruptcy (Fashionista)
Fashionista, November 14, 2019
What Small Brands Can Learn From the Barneys New York Bankruptcy
“Alternatively, fashion and beauty brands might explore the consignment model, more commonly employed by jewelry brands, which allows the brand to “loan” its products to the department store until they are sold. Doing so requires a brand to file a Uniform Commercial Code Financing Statement with a detailed description of the brand’s goods that are consigned, explains Adrienne Montes, an attorney at New York-based law firm Gabay & Bowler and Chair of the Fashion Law Committee of the New York City Bar Association. ‘The financing statement once filed and perfected notifies other creditors that those goods are not owned by that retailer,’ Montes explains. ‘It is crucial that the statement is perfected properly and regularly renewed, and that the brand keeps a detailed record of every item on consignment.’”
