Harold Tillman calls for US laws to keep struggling firms afloat
Fashion tycoon Harold Tillman has called for Britain to adopt US Chapter 11-style rules to give troubled companies breathing space before bankruptcy.
The former British Fashion Council chairman said: “If we had Chapter 11 like in the US we would have more jobs and more businesses rescued.”
He was speaking as he stepped down from his interim post overseeing the buyout of the collapsed Style Group Brands — including Jacques Vert, Eastex and Dash.
Tillman said he was asked by the former head of Style Group to help put together a rescue deal for the collapsed business six months ago.
He assembled and led a group of investors and found a new chief executive in Peter Ridler.
Under Chapter 11 bankruptcy, a company is given time to repay creditors during which it can continue trading.
Critics say this keeps incompetent management in place. But fans say it saves jobs and buoys businesses during what may be temporary difficulties, fending off hasty actions by short-termist creditors.
