55-year-old women’s fashion company files Chapter 11 bankruptcy

The 55-year-old retail apparel and fashion company seeks to restructure its debt and continue operating.

Sep 27, 2025 - 08:30

55-year-old women’s fashion company files Chapter 11 bankruptcy

The retail apparel and fashion sector has faced economic challenges over the last year, with manufacturers and retailers filing for bankruptcy to either reorganize or liquidate their businesses.

Companies have cited many of the same problems that have forced them into financial distress, including rising costs of products and labor, driven by inflation and tariffs; consumers' changing attitudes toward shopping at brick-and-mortar retailers; overmarket lease rates; and rising interest rates on debt obligations.

In some cases, legal issues, such as lawsuits, can force companies to file for bankruptcy, as a filing will trigger an automatic stay of all litigation while a company pursues its bankruptcy case.

Fashion and apparel retailers go out of business

In the case of fashion and apparel rental provider CaaStle, the company filed for Chapter 7 liquidation on June 20, 2025, facing a scandal alleging mishandling and misrepresentation of funds after the company lost $530 million in funding that was previously secured.

Also, outdoor athletic brand NW Alpine revealed on its Instagram page on Sept. 2 that a combination of its difficult cash situation, deteriorating consumer confidence, and a listless outdoor industry had forced it to shut down its business.

"Running out of cash is perhaps the most classic way to go out of business," founder Bill Amos wrote on Instagram.

Rousso Apparel Group LLC and affiliate AGI Sourcing LLC file for Chapter 11 bankruptcy to reorganize.
Image source: Getty Images

Rousso Apparel Group files for Chapter 11 bankruptcy

And now, 55-year-old retail apparel and fashion company Rousso Apparel Group LLC and affiliate AGI Sourcing LLC filed for Chapter 11 bankruptcy protection to restructure their debt obligations and continue operating.

The New York-based company filed its petition in the U.S. Bankruptcy Court for the Southern District of New York on Sept. 26, listing $1 million to $10 million in assets and liabilities.

Related: Popular healthcare retail chain files Chapter 11 bankruptcy

The debtor's largest unsecured creditors include Daenong Corporation, owed over $816,000; Ningbo Haishu Wintex Apparel Co. Ltd., owed over $446,000; ELO Sportswear LLC, owed over $292,000; Ningbo Huazhong, owed over $272,000; and Protex Trading Co. (HK) Ltd., owed over $143,000, RK Consultants reported.

Rousso Apparel Group unsecured creditors:

Daenong Corporation, owed over $816,000.
Ningbo Haishu Wintex Apparel Co. Ltd., owed over $446,000.
ELO Sportswear LLC, owed over $292,000.
Ningbo Huazhong, owed over $272,000.
Protex Trading Co. (HK) Ltd., owed over $143,000.

Rousso Apparel Group, founded in 1970 by Eli Rousso, designs, manufactures, and sells women's updated casual sportswear, weekend and active wear through department stores, retailers, and online, according to its LinkedIn page.

The company launched Oleg Cassini Sport in 2001 for department stores, Three Hearts, and the Pure.Simple.Natural brand. It also launched the Teez-her brand figure control tops, pants, and dresses in 2008.

Rousso launched Santa Fe Apparel in 1995

The company's Santa Fe Apparel, launched in 1995, designs and manufactures outerwear. The product sells under the CoffeeShop label for young and trendy women, as well as its Latte by CoffeeShop outerwear label.

It also offers the XtremeAir label, targeting the missy and woman consumer, featuring down jackets and coats, as well as leather items.

The company's other brands include Love Life Live, Garfield Marks, Activology, and Casual Identity.

AGI Sourcing provides private-label sports products

AGI Sourcing, which has offices in New York, Shanghai, Hong Kong, Mexico, and Central America, is a private label product company that manufactures knits, wovens, fashion/core fleece, outerwear, hard goods, athletic, and team license products for its men and women customers.

The company provides products for Major League Baseball, NFL, NBA, NHL, NCAA, NASCAR, MLS, Majestic, Mitchell & Ness Nostalgia Co., Fanatics, Foot Locker, Champs, Dunham's Sports, Fila, Champion, and other sports apparel companies.

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