TMCnet News
What happened to Abby Z.?(Newsday (Melville, NY) Via Acquire Media NewsEdge) Mar. 16--Proclaimed a godsend by the curvaceous and chic, Abby Zeichner turned out plus-size attire made famous on the celebrity contours of Camryn Manheim, Queen Latifah and Emme. Magazines, newspapers and television programs featured her clothing -- known under the Abby Z. label -- as the long-awaited hip alternative for plus-size women. She launched a SoHo boutique and then a store in Roosevelt Field last fall, part of her plan to roll out 40 stores in four years. And then in February, Abby Z. surprised many -- not the least of whom were contractors still awaiting payments for work done for her Long Island store -- when she filed for Chapter 7 bankruptcy liquidation. The company and its assets have been handed to a court appointed trustee for liquidation. "It's a huge struggle in the best of times," said Howard Davidowitz, chairman of Davidowitz & Associates Inc., a national retail consulting and investment banking firm based in Manhattan. "Just look at the most powerful retail companies. They have been brought to their knees. What are the odds if you're Zeichner?" Zeichner, chief executive of her Abby Z. label, filed for bankruptcy on Feb. 13 under Slant Inc. She listed the company's assets as $270,425 and its liabilities as $459,334, according to court documents. Zeichner and her attorney did not return requests for comment. Listed among her unsecured creditors are both large and small companies. Abby Z. owes $90,000 to Simon Property Group, the Indianapolis-based owner of Roosevelt Field, and $47,560 to American Express, according to court documents. And then there's Direct Drywall Interiors Inc., a Hicksville contracting firm that installed drywall and did carpentry on a tight schedule for Abby Z.'s November opening at Roosevelt Field. The company said it is owed about $36,000 for its work. Like other small businesses taking a financial hit from their clients' bankruptcies, the principals of Direct Drywall say their experience with Abby Z. has made them much more cautious about selecting future jobs. "We have carpenters and laborers who work for us and we pay benefits and everything else," said Barry Sturm, who, with partner Anthony Ferrentino, owns Direct Drywall. "Our suppliers we have to pay. We have to maintain a good relationship with them. Everybody gets paid except for us." To see more of Newsday, or to subscribe to the newspaper, go to http://www.newsday.com Copyright (c) 2009, Newsday, Melville, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |