Costa Mesa-based Liberated Brands has filed for Chapter 11 bankruptcy.
The filing comes after Liberated began shutting down its corporate offices in Costa Mesa this month, triggering 363 layoffs, according to a January posting from the state’s Employment Development Department.
Liberated’s implosion also comes after management firm Authentic Brands Group began pulling licenses and operations for multiple surf and skate brands from the apparel firm in December.
“This filing does not impact the future of the brands, as they have already transitioned to new, well-capitalized partners who are actively investing in their growth and long-term success,” the company said in a statement.
Liberated’s assets and liabilities were estimated at a range from $100 million to $500 million, according to the filing reported by trade publication Shop Eat Surf (SES). Unsecured creditors include a range of overseas clothing manufacturers and other companies that license a few former Boardriders brands that Authentic acquired in 2023, including the O5 Group.
Liberated owes Ningbo Jehson Textiles in China, its single biggest unsecured creditor, $3.2 million, and O5 about $1 million, according to court documents. The company also owes another Authentic licensee Centric Brands approximately $750,000.
The firm has also started a liquidated sale process at its U.S. retail locations, which will close following the liquidation. The process is being conducted by Gordon Brothers Group.
“The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,” Liberated Brands said. “Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future.”
For more on Liberated’s restructuring and the new licensees, see the Feb. 3 issue of the Business Journal.