Just like Old Navy and Big Lots, among other large retailers, Intermix has shuttered a bunch of its stores. Among frequent buyers, this might beg the question- Is Intermix going out of business?
Over the years, Intermix has been juggling under the ownership of different firms; the result? A disaster!
Under such dire economic conditions, rising inflation, changes in consumer buying patterns, etc., companies like Intermix are struggling to stay firm.
So, what is the truth behind the rumors of Intermix going out of business? Let us find out here!
About Intermix
Intermix is a fashion retailer brand that was founded in 1993 by Khajak and Haro Keledjian.
The company is specifically into women’s fashion and is also known for selling a curated selection of brands and designers, such as Balmain, Zimmermann, Sika, Nanushka, Isabel Marant, and more.
Apart from this, Intermix also offers their in-house designed collection called INTERMIX Collection.
In the year 2021, Altamont Capital Partners, which is a private equity firm, acquired Intermix. Then in 2022, Regent LP acquired the company from Altamont and ever since then, everything has been haywire for the company.
Things have gone so out of control that there are rumors about Intermix going out of business. So, is this true? Keep on reading as we reveal the truth to you.
Is Intermix Closing Stores?
The women’s fashion retailer Intermix has shut down 17 of its remaining stores, with five stores still operating.
The owner of Intermix, Regent LLP, has disclosed that they have planned for Intermix to file for Chapter 11 bankruptcy to help them renegotiate leases and open new stores under a new brand name.
Regent LP also has investments in brands like Escada, Club Monaco, etc., and this new strategy is expected to help the business get back on its feet.
Why Is Intermix Closing Stores?
Things went downhill for Intermix when Gap acquired the company in 2012. To start with, Intermix accumulated a lot of corporate overhead under Gap’s ownership.
Things were worse as it is, and the situation worsened when Regent LP acquired the company.
Under Regent’s ownership, Intermix started brands to keep a steep cut for future orders and also for what they were owed at the time.
In November, brands started complaining that they hadn’t received their due payments as the retailer was struggling financially.
Intermix asked a few brands for a 50% reduction in outstanding payables on future orders and on current merchandise. Several of these brands declined the offer and were quite upset about this.
Jeff Rudes, the CEO of L’Agence, said that Intermix hasn’t come to his firm with the 50 percent offer. He also mentioned that he believes only brands with heavy inventory, who don’t have good margin results, have been approached.
It is still to be made clear whether the vendors will be paid in full or not. Intermix has been approaching their vendors, asking them to take reduced payments now, and they would buy from the vendor next season. Some of these brands have walked away, while some have placed them in collections.
Is Intermix Going Out Of Business?
With so much focus around the brand name, including payment issues to vendors and bankruptcy filings, you might be thinking- Is Intermix going out of business? Well, the answer is a bit complicated.
Intermix has filed for Chapter 11 bankruptcy to pay their remaining dues to vendors and to open new stores under a new brand name.
So Intermix might be going out of business, but you can still shop from their remaining five stores, and since they plan on rebranding, you will eventually be able to shop the same kind of collection they are known for under a different brand name.
Intermix Stores That Are Still Open
There are still five Intermix stores that are still open in these locations:
- 1003 Madison Avenue in New York
- Brickell City Centre in Miami
- Palm Beach, Florida
- Scottsdale, Arizona
- Beverly Hills
Wrap Up
These are tough times for Intermix as the company struggles to make their due payments to vendors.
As a result of their dire financial condition, the company has filed for Chapter 11 bankruptcy and plans to restructure and rebrand the company. Will the new strategy be successful? Only time will tell.
We hope you found this article on “Is Intermix Going Out Of Business” useful.
FAQ’s
Does GAP Inc. owns Intermix?
GAP Inc. bought Intermix in the year 2012 for $130 million. However, in 2021, Altamont Capital Partners, which is a private equity firm, acquired the company, and currently, Regent LP owns Intermix.
Where is Intermix headquartered?
Intermix is headquartered in New York, New York, United States .
Why did Gap sell Intermix?
Gap has not disclosed the financial terms of the deal. However, the sale was made so that Gap could focus on its better-performing brands, such as Old Navy, Athleta, etc.