Business News / JLM's financial woes

Have you heard the news? On Monday JLM Couture filed for bankruptcy protection under the Stateside ‘Chapter 11’ platform. The company cited the ongoing dispute with designer Hayley Paige and the Covid pandemic as major factors that have worked against them and their financial standing. Read on...

Joseph L. Murphy founded JLM in 1988 and became chief executive officer and controlling shareholder in the mid-1990s, according to a declaration in the Chapter 11 filing.

So, the bridal industry stalwarts for 30 years have declared over $2.1million in liabilities and have submitted a restructuring plan. In the filing of Chapter 11, JLM has also listed between $1million and $10million in assets. At one time the company employed around 70 people and today that figure stands at just 21.

Under the company's restructuring plan, it says it will significantly scale back its business and safeguard its assets to continue its operations. While the company undergoes this process, its operations will continue as normal.

In a statement, JLM said: "The primary motivators for this decision stem from external challenges including the actions of Hayley Paige Gutman and pressure from legacy creditors, including potential liability stemming from New York City landlord-tenant issues aggravated by the pandemic."

The bridal company and Hayley Paige first came to blows in December 2020 over her use of the company's social media accounts and the name Hayley Paige, one of the names JLM traded as. Hayley was given a temporary restraining order preventing her from posting on the accounts without JLM's approval. However, the litigation costs weighed heavy, and there are claims that the dispute adversely affected the company’s sales.

The fashion designer, Hayley Paige Gutman announced her new name 'Cheval' in a video on Instagram, where she is now found @allthatglittersonthegram

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