High-end denim designer and fashion brand Rock & Republic announced Thursday that it has filed for Chapter 11 bankruptcy protection.

According to the bankruptcy petition filed in United States Bankruptcy Court in New York Thursday, the company has obtained a commitment for a line of credit from CIT Group/Commercial Services Inc. upon it's exit from Chapter 11. Rock & Republic, based in Culver City, said the Chapter 11 filing would ease pressure on its balance sheet. Chief Executive Michael Ball said the company expects to continue day-to-day operations. 

Geoffrey D. Lurie, the newly appointed chief restructuring officer for the privately held fashion company commented on the bankruptcy petition, saying "the Chapter 11 filing is a strategic action that will alleviate balance sheet burdens and enable us to adopt the financial and operational initiatives needed to support the brand's growth needs…We are confident that this is the right move for Rock & Republic."

Lurie went on to say that the company was exploring possible "financial relationships" that would sharpen its focus to emphasize its core apparel and footwear businesses.

One of the largest advantages of chapter 11 is that it allows business to retain their assets and continue to operate the business under the supervision of the court. In chapter 11, you will be required to have your repayment plan approved by a majority of your creditors in order to agree upon the repayment terms. 

If you, or someone you know, are considering filing for bankruptcy, please contact the an experienced Galveston bankruptcy lawyer of Gipson, Norman & Root. Call 281-332-4800.