LUCILE'S CREDITORS FORCE RECEIVERSHIP
New York Times
Dressmakers Established by Lady Duff Gordon Owe $175,000, Have $75,000
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HER $200 A WEEK UNPAID
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General Business Blamed and Report Is Denied of Bad Bills Among Patrons
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Lucile, Ltd., dressmakers, 19 East Fifty-fourth Street, with which the name of Lady Duff Gordon has been identified for some years, went into the hands of a receiver yesterday after an involuntary petition in bankruptcy was filed in the United States District Court. This and a second petition asking for the appointment of a receiver was presented to Judge John C. Knox late Saturday afternoon. The second stated that the liabilities were estimated to be more than $175,000, with assets of $75,000. Judge Knox appointed James K. Cuddy and G. H. Tolman joint receivers, with a bond of $20,000.
The petitioning creditors were: Harry Angelo, $3,000; Faber & Hein, $2,537, and Irving Pless, $3,600. Shaine & Weinrib, 299 Broadway, were attorneys for the petitioners. Among the claims was one for $25,000 by Otto B. Schuloff, President of the corporation. He also was a claimant fo rsalary [sic] in addition to the $25,000, a cash loan. It was explained that none of the officers had drawn salaries for some time.
Lady Duff Gordon, founder of the business, has been in Europe for seven months, during which she has not received the $200 due her each week on a contract. J. L. Goodman of Shaine & Weinrib said that the business dropped from $750,000 in 1920 to $400,000 in 1921. There were indications, he said, of a revival during the current season. The business for March was about double that of the same month last year. There were 190 creditors, 150 of whom have claims of less than $250.
Harry Bandler of Bandler, Haas & Colllns, 2 Rector Street, attorneys for Lucile, Ltd., denied that the embarrassment of the company had been caused by a large number of "frozen credits" among wealthy families, and said that general business conditions had caused it.
"It is due to the general business depression in 1921 and also to the fact that the company was obliged to move to its new quarters at 19 East Fifty-fourth Street during the year, which required the tieing up of a considerable amount of its capital in the improvements which were made in the new quarters.
"The attitude of the creditors is friendly and it is expected that they will co-operate in the reorganization of the business. The order appointing the receivers gave them full authority to continue the business, and it will be continued without interruption. The Spring opening of the company took place on March 9. Since that time orders have been received in such volume as to indicate the largest Spring business in its history. Lady Duff Gordon has been and still is the largest stock-holder."
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HER $200 A WEEK UNPAID
---
General Business Blamed and Report Is Denied of Bad Bills Among Patrons
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Lucile, Ltd., dressmakers, 19 East Fifty-fourth Street, with which the name of Lady Duff Gordon has been identified for some years, went into the hands of a receiver yesterday after an involuntary petition in bankruptcy was filed in the United States District Court. This and a second petition asking for the appointment of a receiver was presented to Judge John C. Knox late Saturday afternoon. The second stated that the liabilities were estimated to be more than $175,000, with assets of $75,000. Judge Knox appointed James K. Cuddy and G. H. Tolman joint receivers, with a bond of $20,000.
The petitioning creditors were: Harry Angelo, $3,000; Faber & Hein, $2,537, and Irving Pless, $3,600. Shaine & Weinrib, 299 Broadway, were attorneys for the petitioners. Among the claims was one for $25,000 by Otto B. Schuloff, President of the corporation. He also was a claimant fo rsalary [sic] in addition to the $25,000, a cash loan. It was explained that none of the officers had drawn salaries for some time.
Lady Duff Gordon, founder of the business, has been in Europe for seven months, during which she has not received the $200 due her each week on a contract. J. L. Goodman of Shaine & Weinrib said that the business dropped from $750,000 in 1920 to $400,000 in 1921. There were indications, he said, of a revival during the current season. The business for March was about double that of the same month last year. There were 190 creditors, 150 of whom have claims of less than $250.
Harry Bandler of Bandler, Haas & Colllns, 2 Rector Street, attorneys for Lucile, Ltd., denied that the embarrassment of the company had been caused by a large number of "frozen credits" among wealthy families, and said that general business conditions had caused it.
"It is due to the general business depression in 1921 and also to the fact that the company was obliged to move to its new quarters at 19 East Fifty-fourth Street during the year, which required the tieing up of a considerable amount of its capital in the improvements which were made in the new quarters.
"The attitude of the creditors is friendly and it is expected that they will co-operate in the reorganization of the business. The order appointing the receivers gave them full authority to continue the business, and it will be continued without interruption. The Spring opening of the company took place on March 9. Since that time orders have been received in such volume as to indicate the largest Spring business in its history. Lady Duff Gordon has been and still is the largest stock-holder."
Related Biographies:
Lucy Christiana, Lady Duff Gordon
Related Keywords
Bankruptcy Debt Creditors Lucile Couture
Relates to Place:
New York City, New York, United States
Contributor
Mark Baber
