Germany’s Rena Lange Launches U.S. Bankruptcy

German fashion house Rena Lange, whose cashmere cardigans and sheath dresses can be found at Neiman Marcus, put its U.S. arm into Chapter 11 bankruptcy this week.

As Daily Bankruptcy Review reported, Rena Lange (USA) Inc.’s Chapter 11 filing comes nearly a month after its parent filed for insolvency in Munich. Citing sources close to the company, Women’s Wear Daily said (sub. req.) the parent faced liquidity issues as it tried to expand.

The nearly-century-old fashion house says its parent’s insolvency prevented it from shipping merchandise to the U.S. without prepayment, but Rena Lange (USA) ran out of money last month. The company asked major customer Neiman Marcus for help facilitating the shipment, but talks failed amid the company’s troubles with its lender and landlord.

Now, Rena Lange (USA) is hoping to use the breathing room of Chapter 11 to figure out a way to obtain the merchandise from its parent and resolve its future.

“If shipments resume, the company can generate revenues and become profitable again,” court papers say. “Filing for Chapter 11 will facilitate that shipment. It will also provide the company and the parent an opportunity to find a new investor for the company and/or the parent.”

The first hearing in the Chapter 11 case has been set for Nov. 13.

Founded in Munich in 1916 as a lingerie shop, the Rena Lange house has since grown to offer luxury ready-to-wear clothes and accessories “aimed at an international clientele who value quality and consistency through design,” according to its website.

Among the Rena Lange items currently for sale on Neiman Marcus’s website are an ivory jacket with detachable mink fur collar ($3,995), red sheath dress ($1,795) and black and white off-shoulder evening gown ($2,995).

Write to Jacqueline Palank at [email protected]. Follow her on Twitter at @PalankJ.