Gatsby Files for Bankruptcy
SAN JUAN—Gatsby, a consignment apparel chain with several stores throughout Puerto Rico and based in Caguas, filed for bankruptcy due to debts totaling some $50 million, company execs announced late Thursday.
Company president Jorge Galliano was quick to point out that the bankruptcy process will not result in the closing of the nine Gatsby stores on the island. Likewise, the process will not lead to any of the company’s 300 employees losing their jobs, or affect the incomes of around 6,000 independent sellers, he added.
According to a company statement, the decision to file for bankruptcy was largely due to new rules imposed by the company’s bank, FirstBank. Execs said the bank had implemented aggressive actions during the last 12 months that significantly affected the company’s liquidity.
During the transition process, all of the Gatsby stores—which are located in San Juan, Bayamón, Carolina, Caguas, Ponce, Manatí, Hatillo, Mayagüez and Naranjito— will remain open in their usual operating hours.