Credit? Dead it!

I thought it might be interesting to follow up on the point being made in Eugene’s series of interviews for Hypebeast, with a link Nima from DG sent me about Active. Active is a big skate chain here in California. Until recently, they had a huge online presence, and about 30 stores across the state. They carry lots of mainstream skate & surf gear, as well as some of the bigger “streetwear” brands like Crooks & Castles, The Hundreds, and 10Deep. The article on SHOP-EAT-SURF says they’ve been doing $60 million in sales per year, which is pretty hefty. I imagine Active is a pretty huge account for lots of brands, and unfortunately for said brands, they’ve filed Chapter 11 bankruptcy. That doesn’t mean they’re closing down immediately, instead they get about 4 months to reorganize – under the eye of the court. During that time, none of the people they owe money to can harass them for payment or send the debt to collection. So basically Active gets a breather, and importantly, the green light to break the lease on their least successful retail locations. There’s a perfectly good chance they’ll recover. Burton is their only secured creditor, so if I’m not mistaken, they’ll be the only ones getting paid by Active for a while. The list of the top 20 unsecured creditors reads like an action sports who’s who, and it’s no surprise that Nike is at the top, with an impressive $1.4 million owed. 

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