Fashion chain in multi-front crisis: millions in debt, massive lawsuit against CEO
Despite the recovery of the men's fashion market since COVID, the "Peter Manning New York" fashion chain was forced to file for bankruptcy following a massive lawsuit by a supplier over unpaid invoices.
The troubles of the men's fashion market in the US continue, even as there are signs of recovery. In the last six years, since the COVID pandemic, men's fashion retailers have been recording a gradual recovery. Giant companies like "Tailored Brands" (the owner of Men’s Wearhouse), which itself experienced difficulties in the past, is now recalculating its path and planning to open 50 branches by the end of 2027. However, not everyone is celebrating.
The men's fashion chain "Peter Manning New York," known for the unique sizing system it developed in 2013 for men of short and wide proportions, filed for bankruptcy protection this week. The request comes in the shadow of a lawsuit filed against it by the supplier "Lever Style," alleging debts of over 1.14 million dollars. According to the plaintiff, the chain's CEO, Jeff Hansen, even signed a personal guarantee to ensure the continuation of work, but stopped paying in 2023.
In the bankruptcy filing, the chain reports heavy debts of 3.1 million dollars, against assets worth only 138 thousand dollars. The main creditors include the landlord of the store in New York, suppliers in Asia, and the e-commerce platform Shopify.
Despite the complex financial situation, "Peter Manning" is trying to move on and reorganize the business. The chain, which operates physical stores in Manhattan and Washington alongside an e-commerce system, surprisingly plans to open a third branch in Boston as early as September 2026.
