PE-backed Jeans Maker To File For Chapter 11

BOBSON & Co.Ltd., a Tokyo-based jeans maker, filed for Chapter 11 with a debt of 734 million yen as of Feb 2011. BOBSON was invested in by Milestone Turnaround Company, a turnaround-focused buyout firm in 2009. BOBSON, once deeply-troubled, was divided into two companies, one was supported by Milestone and the another was newly named "Peachfort Co. ltd." which has dealt with imported-brand clothing. The PE-backed new BOBSON seemed to have recovered at one point, but was said to suffer from diminished sales this year partly because of the March 11th earthquake but mainly because of fierce competition in the price-sensitive jeans market.