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Company blames "major cash liquidity crisis."
April 7, 2009
By: TOM BRANNA
Editor
Blaming a “major cash liquidity crisis,” Jane Cosmetics has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Jane is a value-oriented cosmetics brand with annual revenues of about $25 million. In February, the company sent a letter to suppliers explaining its problems and how it “is unable to meet its current payment obligations.” The problems stem from three contributing factors, the letter said, including a number of discrepancies with a “major mass retailer,” late payments from retailers as well as an aggressive December new product launch.
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