CL Fashion Converts to Chapter 11
Vernon, Calif.-based CL Fashion, the company formed by the merger of Carole Little and Chorus Line Corp., has filed in U.S. Bankruptcy Court in Los Angeles to convert the Chapter 7 involuntary bankruptcy petition into a Chapter 11 reorganization. The companies’ total liabilities are approximately $80 million, according to the filing, of which approximately$11 million is in unsecured trade credit and $1 million is owed to employees.
Many of the employees have been demonstrating against CL’s corporate parent, Levine Leichtman Capital Partners, and its executives since Chorus Line and Carole Little abruptly closed their doors on Nov. 17 in the wake of the Chapter 7 petition filed by three creditors of Chorus Line.—Louis Chunovic
