Hilo Hattie Bankruptcy, Part 2

Back on May 10, I wrote Part 1 about Hilo Hattie, “the store of Hawaii” and the now obviously insurmountable problems that they were facing.  These continue to include:

• A deteriorating domestic and international Hawaii tourist economy.
• Their switch from Hawaii-made to lower quality and less desirable foreign-made garments.
• Inability to keep pace with other Hawaii clothing designers.
• High expenses.
• A difficult credit environment.
• Failed mainland expansion attempts.

Today it came to a head, with the Kauai-founded company filing for bankruptcy.  Will it end there, I’m not sure. Hilo’s new owners, TOC, indicate they will go forward with their Waikiki flagship store, due to open in 2009.  They also stated that no stores will be closed and no layoffs are planned.

We continue to wish Hilo Hattie and their employees all the best.