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 thename of Lady Duff Gordon has been identified for some years, went intothe hands of a receiver yesterday after an involuntary petition inbankruptcy was filed in the United States District Court. This and asecond petition asking for the appointment of a receiver was presentedto Judge John C. Knox late Saturday afternoon. The second stated thatthe liabilities were estimated to be more than $175,000, with assets of$75,000. Judge Knox appointed James K. Cuddy and G. H. Tolman jointreceivers, 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 wasa claimant fo rsalary [sic] in addition to the $25,000, a cash loan. Itwas explained that none of the officers had drawn salaries for sometime.

Lady Duff Gordon, founder of the business, has been in Europe for sevenmonths, during which she has not received the $200 due her each week ona contract. J. L. Goodman of Shaine & Weinrib said that thebusiness dropped from $750,000 in 1920 to $400,000 in 1921. There wereindications, he said, of a revival during the current season. Thebusiness 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 thecompany had been caused by a large number of "frozen credits" amongwealthy families, and said that general business conditions had causedit.

"It is due to the general business depression in 1921 and also to thefact that the company was obliged to move to its new quarters at 19East Fifty-fourth Street during the year, which required the tieing upof a considerable amount of its capital in the improvements which weremade in the new quarters.

"The attitude of the creditors is friendly and it is expected that theywill co-operate in the reorganization of the business. The orderappointing the receivers gave them full authority to continue thebusiness, and it will be continued without interruption. The Springopening of the company took place on March 9. Since that time ordershave been received in such volume as to indicate the largest Springbusiness in its history. Lady Duff Gordon has been and still is thelargest stock-holder."

Related Biographies:

Lucy Christiana, Lady Duff Gordon

Relates to Place:

New York City, New York, United States

Acknowledgements

Mark Baber

Comment and discuss

Citation

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