MJP –
An unexpected bankruptcy has been filed by a California-based luxury brand, which lists assets between $500,000 and $1,000,000 and liabilities of up to $10,000,000.
The high-end clothing shop McMullen sought bankruptcy protection under Chapter 11 on August 21st, filing with the United States Bankruptcy Court for the Northern District of California.
Online rival Moda Operandi has allegedly sued, claiming copyright infringement, and this filing is in response to that action.
In its bankruptcy petition, the debtor from Oakland, California, detailed assets ranging from half a million dollars to one million dollars, as well as liabilities ranging from one million dollars to ten million dollars.
Unsecured creditors will be able to get their hands on the money, according to the corporation.
Just about two weeks after high-end clothing store Moda Operandi sued McMullen in the Northern District of California U.S. District Court, the debtor filed its bankruptcy petition.
Claiming to have used Moda Operandi’s copyrighted product photographs without permission, the lawsuit accuses McMullen of copyright infringement.
As reported by Sourcing Journal, the case was filed on August 7 by the Brooklyn, New York-based luxury clothes company Moda Operandi.
There are claims in the lawsuit that McMullen “committed copyright infringement with actual or constructive knowledge of, or with reckless disregard or willful blindness for (Moda Operandi’s) rights in the (photos), such that said acts of copyright infringement were willful.”
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Moda Operandi, the plaintiff in the case, used 19 of its copyrighted images—showcasing a wide range of apparel—in their lawsuit.
The lawsuit asserts that these photographs were sourced from McMullen’s website and were accompanied by screenshots. According to Moda Operandi, the photos that McMullen utilized were either plagiarized versions of their own or very similar.
The amount of damages sought by Moda Operandi will be decided during the trial.
To top it all off, the plaintiff wants an injunction to stop McMullen from utilizing those 19 photographs without Moda Operandi’s approval.
An automatic stay will be put on all litigation against the corporation while the bankruptcy case advances due to McMullen’s Chapter 11 bankruptcy filing.
The website states that Sherri McMullen started the label in 2007 and that it has been praised by major fashion publications like Harper’s Bazaar, Women’s Wear Daily, and Vogue.
The store sells high-end womenswear from renowned labels like Christopher John Rogers, Diotima, The Row, Dries Van Noten, and Aisling Camps.
Dries Van Noten’s high-end menswear collection is also on display.
On August 12th, McMullen expanded its boutique offerings to include a second San Francisco site, this one in the Presidio Heights neighborhood, joining its flagship store in Oakland.
Through its website, the clothing shop also runs an e-commerce platform.
