Gotcha Files for Chapter 11, Dissolves Partnership
Beleaguered Gotcha International L.P. recently announced a twofold reorganization plan by filing for Chapter 11 bankruptcy protection and a motion to dissolve its partnership with domestic licensee Ederal Sportswear Inc.
Officials at the 23-year-old Delawarebased limited liability partnership cite nonperformance issues in the past 11 months that have led to the reorganization of its finances, licensees and distribution channels.
By cutting off ties with Ederal, Gotcha has forged new licensee partnerships to focus on mid-tier retailers in building brand equity in the marketplace and to “become more competitive” in its retail pricing strategy, said Donald Grier, president of Gotcha Holdings. He noted the company won’t pursue relationships with mass-market retail chains such as Wal-Mart and Target. Gotcha and Gotcha Girl showed at MAGIC International recently under licensees Cerritos, Calif.-based Michael Gerald Ltd. for boys and young men, Van Nuys, Calif.-based Jerry Leigh for juniors and Mamiye Bros. for girls, a New York-based licensee whose accounts have included Barbie and GUESS?
“Securing the right partners is of the utmost importance in licensing,” Grier said. Bags, backpacks, footwear, sunglasses and watches are among the categories the company hopes to license in the future.
Gotcha will relocate its offices from Irvine, Calif., to the Cerritos headquarters of Michael Gerald in the next 30 days, Grier said. —Nola Sarkisian-Miller
