L.A.-based Band of Outsiders was up for auction yesterday morning, but bidders walked away empty handed. The intellectual property and inventory will remain under the Belgian fashion fund that put on the sale, CLCC SA, according to WWD. Although multiple bids were made, none were sufficient to cover the brand’s enormous debt—$2.5 million.
But there’s a glimmer of hope: CLCC SA said it will continue to market Band of Outsiders in the U.S. and overseas. After founder Scott Sternberg posted a firm farewell to his Instagram, chances are he won’t be involved in whatever future the brand has.
“CLCC SA is now the owner of the inventory and intellectual property of Band of Outsiders after successfully credit bidding a portion of its debt at the public auction sale on July 29 … CLCC SA believes in the Band of Outsiders brand and will continue to market Band of Outsiders in the U.S. and overseas,” said the statement credited to fund representatives.
This news comes after a year of bad luck for Band of Outsiders, including its announcement in February that it wouldn’t show again at New York Fashion Week, in May that it cancelled fall orders and would shut down, and then most recently that more than 5,000 items of remaining inventory would be auctioned off.