Bill Blass Parent Poised to Collapse

The New York fashion world has been caught off guard by news that the current shepherd of the Bill Blass brand is on the brink of failure, according to The New York Times.

The Times reports that NexCen -- a young buyout firm with ambitions of rolling a number of smaller brands into a synergistic conglomerate -- is pressed for money and admits "substantial doubt" that it will remain in business.

According to the Times, NexCen has several months to pay off a $21 million loan to finance its $94 million acquisition of Great American Cookies -- one of a number of mall-oriented businesses it has purchased since its 2006 founding. Unfortunately, the company has been frozen out by lenders, which have tightened their policies in the wake of the subprime collapse. The cooler credit market and a broader economic slowdown have already tipped a number of large retailers into bankruptcy.

NexCen's other brands include apparel retailers The Athlete's Foot and Shoebox New York; MaggieMoo's and Marble Slab ice cream shops; mall snack shacks Pretzel Time and Pretzelmaker; and Waverly home furnishings.

Read The New York Times' story here.