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NEW YORK — David Lipman’s advertising agency, Lipman, has filed a voluntary Chapter 7 petition in Manhattan bankruptcy court.
The petition, under Lipman Operating LLC, was filed Tuesday, and involved four related entities. Those entities include parent company Revolate Holdings Inc. and the three Lipman Archetypes Holding divisions.
A Chapter 7 filing under federal bankruptcy code provides for the liquidation of the company that has filed. The proceeds of the sale of a debtor’s nonexempt property is distributed to satisfy claims of creditors. In the Lipman filing, the debtor has indicated that following the sale of nonexempt property and the payment of administrative expenses, there will be nothing left to pay unsecured creditors. Unsecured creditors are those who extend credit based on a promise to pay.
Lipman, the chief creative officer of his firm, said, “I’m in mourning right now. I fought for four months to try to get these bills paid. It consumed every minute of my days and nights, to try to make this happen, and in the end it didn’t happen. All that mattered to me during these last four months was to make sure people got paid. My heart goes out for all the people who got hurt, to my employees, my clients and my investors.
“This business has been in my family for three decades. I have to live with this. It’s now about picking up the pieces and trying to help those that got hurt along the way,” he added.
Revolate’s chairman, Gregory Rayburn, the turnaround expert who was brought in midsummer to restructure operations, could not be reached for comment.
The creative agency Lipman shuttered its doors two weeks ago.
The creditor matrix in the bankruptcy court filing includes brands (Seven For All Mankind, Christian Dior Couture, Fendi Adele S.R.L., HMX LLC, Stuart Weitzman); talent and service agencies (Billy Farrell Agency, Entourage Model and Talent Agency, Ford Models Inc., Milk Studios LLC) and media firms (Brides and Brides.com, Elle.com, Hearst Communications Inc., Wall Street Journal). It also included Lipman, Rayburn and Andrew Spellman, chief executive officer of Revolate.
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