The Dallas-based company said it’s planning to reorganize. It added more casual apparel in recent years, but it’s not clear what appetite consumers have for spending in the coronavirus era. Dallas-based online men’s custom clothing brand J. Hilburn has filed for Chapter 11 bankruptcy. The company, which was founded in 2007 in Dallas and made it through the Great Recession as a startup, is trying to reorganize under the protection of the U.S. Bankruptcy Court in Dallas. The tailored men’s clothing line tried to pivot some in recent years by adding more casual apparel, including jeans, but its main lines were formal wear, custom suits and shirts. The company laid off an undisclosed number of employees at its Dallas headquarters last month. “J.Hilburn has a loyal client base. We believe in our stylists, in the growth potential of the men’s custom market, and in the ability of our management team to lead the company to future success,” CEO David DeFeo said in a statement. “Together, the company and our stylists community, along with our loyal clients, will weather this economic turmoil and come out on the other side as a stronger and more successful business.” DeFeo came to J. Hilburn last year from the Worth Collection, which is liquidating in a bankruptcy filed in February. DeFoe is J. Hilburn’s third chief executive in three years. Similar to Worth, J. Hilburn sells through a network of personal stylists and directly to customers online. The company said it anticipates no interruptions in business, and all current and future orders will be filled. Stylists work on commission and meet with customers at their homes, offices or in showrooms in Dallas, New York, Boston and Bellevue, outside of Seattle. J. Hilburn owes $15,621 in rent to Inwood Village, where it opened its first showroom in 2016. J. Hilburn said in the initial filing that it has assets of under $10 million, but it owes more than that to vendors. Debts include $6.55 million to Hong Kong-based TAL Group, $806,052 to Portugal-based Criaimie Rua do Facho and $665,957 to the supply chain solutions division of UPS. It owes $2.73 million on a term loan with Austin-based Escalate Capital Partners. Several shareholders were listed from Dallas and Menlo Park, Calif. The company raised $13.8 million in 2013, and it’s listed as an active investment of Boston-based Battery Ventures. Other shareholders listed in the filing are San Francisco-based Baseline Commerce Seed Fund, Menlo Park Bridgescale Partners, Dallas-based Buaite Againn LLP, Hong Kong-based South China (Jersey) Holdings and Dallas-based Lotus Holdings, which listed J. Hilburn co-founder and former CEO Veeral Rathod as a contact.
