Fashion company SC with A-list followers files for bankruptcy

The Mount Pleasant-based outdoor clothing brand, whose fans have included Grammy Award winner Dua Lipa and celebrity Kylie Jenner, has filed for liquidation following a debt-collection lawsuit filed by the company’s manufacturing partner.

Louisa Ballou LLC — a designer of swimsuits, T-shirts and dresses — said in a Sept. 6 filing with the U.S. Bankruptcy Court that it has total assets of $95,174 and liabilities of nearly $872,000.

Louisa Ballou, the brand’s founder, did not respond to a request for comment.

Nearly all of the company’s assets include the actual cost of nearly 1,200 units of unsold merchandise, most of which is listed on the company’s website.

More than half of her debt is owed to Atelier Amelia Corp., which makes clothes for emerging designers. The New York-based company filed a civil lawsuit against Louisa Ballou LLC on July 24, alleging the company has failed to pay nearly $489,000 in outstanding invoices.

The designer did not respond to the complaint. He filed for bankruptcy about two weeks after it was served.

Most of the remaining creditors are business lenders and overseas wholesalers, consultants and suppliers.

Louisa Ballou LLC was founded in 2018 after its patron, a Charleston native, returned to the Lowcountry after earning a bachelor’s degree in fashion printing from Central Saint Martins art school in London.

“Known for her colorful, bold patterns, Ballou has gained a legion of celebrity fans,” wrote Vogue Business magazine, with singer Megan Thee Stallion and model Bella Hadid among the first to wear her designs.

Most recently, in February, Brittany Mahomes — the wife of Kansas City Chiefs quarterback Patrick Mahomes — posted a series of photos on Instagram of herself posing in one of the company’s one-piece swimsuits.

According to the bankruptcy document, the company’s sales topped $3.1 million in 2022 but fell to $2.4 million the following year, meaning revenue for the year was $368,364.

A virtual meeting of the company’s creditors is scheduled for September 30.