It's definitely been a dramatic summer on the local retail scene.
They're seeking more than half a million dollars in unpaid bills. The former owners (Jake is now owned by an investment company) told WWD that "It’s bad debt. At the end of the day, there is no money to pay anyone. The bank didn’t recover the money owed to them as a lender."
Dan Zazove, the designers' lawyer, plans to "urge the court-appointed trustee to pursue the assets that are now being used to operate the Jake Retail Group," says WWD. “'It appears as if all the assets of Price Allen were sold to the new company for $80,000, which seems a little unreal because the average inventory was estimated to be $1.5 million and sales were [estimated] to be in excess of $5 million annually.'”
The designers note that other stores having trouble paying their bills have made efforts to work out payment plans and the like.