“Macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, supply chain delays, a decline in customer demand well below the historical trendline, shifting consumer preferences, and substantial fixed costs placed significant pressure on Liberated’s revenue and cost structure,” Hymel stated.
Liberated Brands also released a statement emphasizing the difficulties the company faced in an increasingly volatile retail landscape.
“The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,” the statement read.
Future of the Brands
Despite the closures, Liberated Brands suggested that its seven brands may not be gone permanently. The company announced that it is “transitioning its brand licenses to new license holders as part of a management transition to ensure continuity for the brands and their success moving forward.”
