In Brief: Khepra/Vittadini
This article was originally published in The Rose Sheet
Executive Summary
Khepra/Vittadini: Court hearing to consider the termination of Khepra Beauty Group's licensing agreement with Adrienne Vittadini will take place June 25 in the U.S. Bankruptcy Court for the Southern District of New York, according to court documents filed June 11. Vittadini sent a letter terminating the licensing agreement April 23, three days prior to the involuntary Chapter 7 bankruptcy petition filed against Khepra by three of its creditors -- Givaudan-Roure, Beauty Fashion and Jefferson Smurfit. The hearing will consider terms negotiated by Khepra and Vittadini including: termination of the licensing agreement, the sale of Vittadini trademark property (including molds, package design and remaining inventory) to the designer for $1 mil., the waiver of Khepra's $487,000 debt to Vittadini and the right for Khepra to sell $400,000 in existing inventory. Khepra initially opposed Vittadini's request to terminate the agreement, claiming protection under the automatic stay provision of the bankruptcy code. According to the creditors' representative, the debt owed to the companies totals about $761,000. Khepra blamed its financial woes on the termination of its roles as sales agent for Procter & Gamble's prestige fragrances and Iman cosmetics in 1995 and as distributor for Etienne Aigner in February, according to the court documents...