The going-out-of-business sign apparently is up at Sundance Living, the apparel and household decor catalog business, after mounting financial pressure from artisans who say the brand owes them more than $2 million.
On Thursday, the company, formerly known as Sundance Catalog, advertised a “CLOSING SALE” on its website, saying, “Everything Must Go.” At the outlet in Salt Lake City’s Sugar House neighborhood, signs proclaimed, “Entire store on sale!”
An email sent to past shoppers the same afternoon said the sale applied to “ALL LOCATIONS” — meaning all 16 of the brand’s brick-and-mortar stores. This comes after five makers that provided goods to sell in the catalog filed an involuntary bankruptcy petition against the company earlier this month.
In an involuntary bankruptcy petition, creditors attempt to force a debtor into bankruptcy instead of the debtor, in this case Sundance Living, filing on its own behalf.
Sundance Living CEO Laura Barrett did not immediately respond to The Salt Lake Tribune’s request for comment Thursday. Neither did any of the attorneys representing the assignee for the brand in bankruptcy proceedings.
Attorneys for the listed creditors — Kyra Kreations Inc., Volo Fin Pte. Ltd., Aalamwaar Inc., Malani Impex Inc. and Fashion Avant Garde Designs Pvt. Ltd. — also did not respond to requests for comment.
[Read more: Sundance catalog: As customers complain, jewelry designers say they are owed millions]
According to court papers, Sundance Catalog transferred its assets to Corbin Liquidation LLC on June 25, making the LLC its assignee, and “entered into a general assignment for the benefit of creditors.”
Such agreements allow an assignee to sell a company’s assets and distribute the proceeds to creditors. Attorneys for Corbin Liquidation argue the process is faster, less expensive and will maximize the company’s assets better than bankruptcy.
The company’s decision to take this step followed “an extended period of economic distress and unsuccessful attempts to obtain additional financing or a purchaser of its business as a going concern,” the attorneys wrote in a document filed Tuesday.
The agreement was “was extensively negotiated between the Assignee and Sundance, with the full support of Sundance’s senior secured creditors,” who are owed about $134.5 million, plus interest and fees, attorneys wrote.
Since late June, attorneys wrote, Corbin Liquidation has been operating the company “to sell Sundance’s remaining inventory and has taken initial steps to commence a sale process that would culminate in the liquidation of Sundance’s assets and payment of Sundance’s creditors in order of their priority.”
Because of that, the liquidation attorneys have asked a judge to dismiss the involuntary petition.
The catalog is a spinoff of Robert Redford’s Sundance Mountain Resort in Provo Canyon. It developed a loyal following by curating products that emanated rugged Americana, showcasing artisans who crafted small-batch, high-quality jewelry, clothes, furniture and other goods.
Redford, now 88, and then-CEO Bruce Willard sold Sundance Catalog in 2004 to a pair of financial firms. He sold the resort in 2020 to two high-end resort firms.
More recently, customers and the catalog’s makers have complained about a drop-off in the quality of the products.
In May, jewelers and other artisans spoke out about unpaid invoices from the company and had asked for their products and samples back, while expressing hope that the iconic catalog that helped launch many of their brands could stay in business.
Last week, a Connecticut news outlet reported that the Sundance store in Westport, Conn., was “in liquidation” and would soon close. At the Salt Lake City store on Thursday, staffers were telling customers that merchandise was 30% off the last marked price. Fixtures, such as tables laden with home goods, were also labeled for sale.
