Rock and Republic

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Please provide a history of the the growth of the brand Rock & Republic.

Hello! Thanks for your request for a history of the growth of the denim brand Rock & Republic.

The short version is that I have provided Rock & Republic's history timeline and growth over the years as well as its present status. 

Below you will find a deep dive of my findings.

HISTORY
Here is a timeline of Rock & Republic's history based on the sources I have found.

Pre-2002 - Michael Ball, Rock & Republic's founder, was a dedicated cyclist who designed race suits for his teammates. He also designed a pair of blue jeans for his girlfriend which drew attention and started the idea of a denim brand. Ball used his winnings from cycling as well as a past deal with the company Xerox to start his business. 

2002 - Michael Ball launches Rock & Republic after meeting Andrea Bernholtz, who helps him with her experience in the entertainment and luxury fashion industry. 

2004 - Spicegirl celebrity Victoria Beckham signs a $500,000 contract to endorse Rock & Republic's limited edition line of jeans for women. This boosts the brand's popularity.

2006 - Victoria Beckham launches her own denim line and leaves Rock & Republic.
 
2007 - Michael Ball launches Rock Racing, a professional cycling team that wears the Rock & Republic logo on their racing uniforms. At this time Rock & Republic also secures sponsorship of luxury brand Cadillac.

2008 - Rock & Republic launches its own cosmetics line.

2009 - Rock Racing is disbanded, followed by layoffs within the company. At the same time, Rock & Republic launched its affordable premium denim line "Recessions Collection". However, the company continues to struggle  during the economic recession. 

2010 - Rock & Republic files for Chapter 11 bankruptcy protection and obtains $7.5 million in debtor-in-possession financing from CIT Group. 

2011 - VF Corporation buys the brand, but not its remaining inventory and stores, for $57 million. In the same year, VF Corporation licenses Kohl's to sell Rock & Republic apparel exclusively in its stores and at Kohl's typical prices. 

Analysis:  Racked Chicago observed that Rock & Republic ran into trouble when it launched its cosmetic lines and expanded into freestanding stores in the middle of the recession, just as buyers spurned luxury denims. The New York Post also identified Michael Ball as an aggravating factor in the company's slide into bankruptcy. According to NYP, Michael Ball collected expensive luxury cars at the company's expense. 

GROWTH
 Encyclopedia.com provides details about Rock & Republic's growth before its bankruptcy. 

2002 - Rock & Republic was able to sell its denim line in 500 stores in its first year. This is due to the brand's timing of its launch and its product quality that attracted a cult following.

2004 - Rock & Republic debuts a men's denim line. It also  gained popularity for the runway shows it would stage at the twice-yearly Los Angeles Fashion Week. 

2006 - By this time Rock & Republic was selling its apparel in 2,000 stores. Encyclopedia.com observes that R&R had remained a privately held company in contrast to its competitors e.g. 7 For All Mankind, True Religion, etc. which had  signed up with larger apparel manufacturers. 

2007 - Rock & Republic plans its first freestanding stores in premium destinations such as New York's Meatpacking District and London's Notting Hill area. 

2009 - Michael Ball reportedly had plans to offer an initial public offering of stock once the additional lines of accessories which included footwear, eyewear, and men's suits and ties were fully operational. However, by next year Rock & Republic had filed for Chapter 11 protection against bankruptcy. 

POST-BANKRUPTCY
Following its Chapter 11  filing, Rock & Republic announced that it will continue to be in business while reorganizing its operations. 

Mr. Geoffrey Lurie, R&R's Chief Restructuring Officer, said, "The pillars of our restructuring strategy include strengthening the Company’s financial capacity, realigning its product focus and enhancing its operational execution."

Today Rock & Republic is still available at Kohl's as a discount jeans brand.

CONCLUSION
To wrap it up, based on available resources I have provided Rock & Republic's history timeline and growth over the years as well as its present status. 

Thanks for using Wonder! Please let us know if we can help with anything else!

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When and why did the brand Rock & Republic stop growing?

Hi there, and thanks for asking Wonder! I understand you'd like an analysis of when and why Rock & Republic stopped financial growth. In short, several analyses of the Rock & Republic bankruptcy agree that while Rock & Republic saw decline in revenue as a result of the 2008 US recession, its bankruptcy was related more to the CEO's profligate spending and erratic business decisions than to slowdown in financial growth. Below you'll find a deep dive of my findings. 

LEGAL AND FINANCIAL BACKGROUND 

As you are likely aware, Rock & Republic (R&R) filed bankruptcy on April 1, 2010. The company publicly posited at the timing of the filing that it intended to restructure and continue trading, and was bailed out with a $60M investment by various creditors; nonetheless, it sold its intellectual property to VF Corporation less than a year later. While R&R faced "steep losses" in 2009, it was not unique in this situation; many other fashion retailers also saw revenues drop in the 2008 recession. The oldest date of reference to R&R's financial troubles are indicated by its failure to pay rent on its Rodeo Drive storefront starting in November 2008. In its bankruptcy filing, the company " listed assets of $50 million to $100 million and liabilities of $10 million to $50 million."

It should be noted that deep analysis of Rock & Republic's financial situation were very limited in available resources; the preceding  pieces of information were the only ones discovered by my research. Although I did endeavor to source the original bankruptcy paperwork for additional data points, it was not available in free resources. 

BALL'S ECCENTRIC MANAGEMENT 
 
As one analyst noted, "recessions reveal vulnerabilities that are hidden during times of broad-based economic growth," and this seems to have been the case for R&R. CEO Michael Ball was publicly casual about his $4M habit of purchasing luxury cars, sometimes as many as two a month; but the detriment to Rock & Republic appears to derive from the fact that Ball passed the bill for at least some of these purchases on to the company. In legal motions filed in 2011, "an Aston Martin, a Bentley, a Mercedes-Benz...[and a vintage Mustang]" were all listed as assets in the 'unlawful possession' of Ball, and belonging in right to the trust set up for liquidation of R&R's property.  

Multiple analysts also reported on Ball's erratic behavior, which includes unfavorable business decisions and unprofessional behaviors: 
- He "refused an offer to refinance a $15 million term loan from Richard Koral...and kept insisting the company was worth $100 million and that he could pay [Koral] back." This decision was the lynchpin in the eventual necessity to file for bankruptcy, as the loan was due on April 2nd, one day after the bankruptcy filing. 
- He bailed on rent payment for a sublet Rodeo Drive storefront that R&R had never occupied, and then canceled at last-minute a meeting with interested parties to settle the situation.

Although not influential in necessitating R&R's bankruptcy, Ball's behavior during the bankruptcy and subsequent liquidation are consistent with behavior prior: he actively blocked the liquidation trust's activities and hoarded vehicles and other assets for over a year, eventually requiring legal action by the trust's trustee in order to seize the assets. He also aggressively resisted paying back rent on multiple properties. In addition, Ball had also been accused of sexual harassment, assault, and blackmail.

CONCLUSION

To wrap it up: while R&R suffered financial setbacks during the 2008 recession, its demise as a company is generally agreed to have been the result of the CEO's extravagant personal spending, poor financial strategy and erratic behavior. Thanks again for asking Wonder! I hope this information is useful. Please let us know if there is anything else we can research for you.

Wonder

Rock and Republic

Delivered June 22nd, 2017

Please provide a history of the the growth of the brand Rock & Republic.

When and why did the brand Rock & Republic stop growing?

Did this report spark your curiosity?

From Part 01

Rock and Republic Blue Jeans | Brand History

Michael Ball debuts his "Recession Collection" | The Daily Beast

Rock & Republic files Chapter 11 bankruptcy | Reuters

Rock & Republic brand coming to Kohl's | Journal Sentinel

Kohl's Announces Exclusive Rock & Republic Agreement to Begin 2012

The ball is over | New York Post

History of Denim Brands: Rock & Republic

Rock & Republic plans to reorganize, build growth platform on core apparel and footwear business - Atlas Advisors

Michael Ball | Encyclopedia

The It-Jeans of the Early-2000s: Where Are They Now? | Style Caster

From Part 02

The ball is over

Rock & Republic redo

Bankrupt Rock & Republic Pursued by Landlords

Rock & Republic trustee takes aim at ex-CEO

New York Southern Bankruptcy Court Case 1:10-bk-11728 - Rock & Republic Enterprises, Inc. and David Gottlieb, Liquidating Trust Administrator of | Inforuptcy

10 Bankruptcies That Rocked Retailing in 2010 | Retail Trends | RIS News: Business/Technology Insights for Retail, Supermarket Executives

VF Corporation Completes Acquisition of Rock and Republic Brand

Fashion brand Rock & Republic files for Chapter 11 bankruptcy protection [Updated]

New York Investors Save Rock & Republic