Seven months after 16-year-old Russian golden child and fashion designer Kira Plastinina burst onto the U.S. scene with a dozen boutiques bankrolled by her millionaire father, the much-hyped chain has filed for bankruptcy protection and closed most of its American stores.
The teen's May debut in the states was meticulously orchestrated, with a publicity spree and a bicoastal pair of glittering launch parties. But her apparel and accessory offerings -- often slathered in pink and purple and girlie accouterments like hearts and stars -- apparently stumbled as the economy began to flail.
Los Angeles-based KP Fashion Co. filed for Chapter 7 bankruptcy Wednesday in New York, and at least four of the six branches in Southern California shut their doors in the last two weeks. At least three other stores around the country have already closed, according to the shopping centers where they were based.
The chain had plans to open 250 stores in the U.S., executives told The Times in May. Now, the chain's website is advertising 75% discounts on all merchandise.
More than 100 creditors, including Verizon, the Glendale Police Department and Ford Models Inc., are owed $54.5 million while the company has just $9.7 million in assets, according to the bankruptcy filing. KP Fashion is also embroiled in a trademark infringement suit brought by Pacific Sunwear of California Inc., according to the filing.
KP Fashion representatives did not return calls seeking comment.
With her $60 bubble dresses and $90 fur-trimmed puffy jackets, Plastinina faced tough competition in the U.S. from other clothiers such as Forever 21 and H&M, which offer similar fashions at lower prices. But she still has a sizable fan base in Russia, Ukraine and Kazakhstan, where she has dozens of stores. (Those stores are not included in the bankruptcy filing.)
Since offering to turn his daughter's doodled designs into a clothing line when she was 14, Plastinina's father, Sergei Plastinin, has said he has sunk $80 million into setting up the chain. Plastinin, who has a net worth of more than $600 million, is a shareholder in and former chief executive of Wimm-Bill-Dann, Russia's largest dairy and juice producer. He also has investments in real estate, agriculture and fertilizer businesses.
