New York-based activewear brand Yogasmoga has just filed for bankruptcy, following an involuntary chapter 7 bankruptcy in November, the Wall Street Journal reports. Three creditors say that they are owed $3.2 million.
The brand, known for high-tech fabrics and U.S.-based manufacturing, was on an ambitious growth trajectory. It started online, but had been trying to expand to brick-and-mortar stores quickly. The founder and CEO tells Racked that this “overgrowth” did the company in.
But this might also spell troubles for the larger athleisure market, which might be nearing the saturation point.