Fashion House of Designer Bibhu Mohapatra Files for Chapter 11 Bankruptcy

by San Antonio Attorney

Bibhu Mohapatra filed for Chapter 11 bankruptcy in New York claiming an estimated $1 million in debt.

The Indian designer is famous for his elegant day wear clothing.  His creations had been worn by First Lady Michelle Obama, most notably during an official visit in India in 2015.

Mohaptra said the business will continue throughout the proceeding.

Small designers have been facing challenges, especially those that do not have external investment and relying on a wholesale model.  In 2016, Ohne Titel, Suno and Jonathan Saunders, Suno and Ohne Titel have closed and more young fashion designers are likely to follow this path.

His clothing line is sold at Saks Fifth Avenue, Bergdorf Goodman and other upscale boutiques.  Mohaptra also designs a fur line under BC International license and claimed $81,000 in assets in the bankruptcy court filing.

He said in an interview that imminent debt restructuring is intended to draw outside investors in his clothing lines and allow him to start on a less expensive collection.

The designer started his collection in 2009 after a decade of working full time for design house J.  Mendel and he was a student of the CFDA Fashion Incubator, a business development program.

Bankruptcy allows people with too much debt to restructure their finances while protecting their assets from creditors.  A Debt Relief Attorney can discuss about the bankruptcy process that is appropriate to a particular situation.

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