Booming Bankcrupcy

Since 1963 Hilo Hattie's (formerly known as Kaluna Hawaii Sportswear) has been a staple in Hawai`i. In October 2008 the 45 year old company filed for bankruptcy. The company has attempted to reorganize and formulate an alternative business plan. Despite these attempts Curtis Ching, a U.S. trustee and federal monitor for the bankruptcy claim, recently suggested the company be liquidated.

Ching's claims the retail company does not have a viable business plan and will not be able to pay off the incurred debt. He maintains the company has fallen further into debt and will not regaining financial control.

A Hilo Hattie’s representative called Ching’s suggestion premature however, the company’s recent history shows there has been a continued downward spiral.

After a string of new stores and excellent business Hilo Hattie’s took a downturn. In 2003 it began closing stores newly opened in California. In July of last year Hilo Hattie’s was sold to a California company. Three months later he filed for Chapter 11 bankruptcy allowing the company to continue operations and reorganize. A major portion of this “reconstruction” was a new flag ship store in the Royal Hawaiian Shopping Center. Announced in November 2008 the multi-million dollar project was cancelled two months later by Kamehameha Schools and Festival Co. due to lack of financing and failure to comply with regulations.
With no possible recourse insight Ching suggests the company convert to Chapter 7 bankruptcy and liquidate. Although there are many who cannot imagine a Hawai`i without Hilo Hattie’s it is clear the market, local and visitor, is not here. I for one do not patronize the store because of the high cost and low quality of products. In reading the list of comments on the Honolulu Advertiser’s website, many locals feel the same.