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Digital Brands has ambitious expansion plans. A trade creditor wants them on ice until it is paid.

April 21, 2022

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In January, Digital Brands Group announced the proposed acquisition of women’s apparel brand Sundry in a cash-and-stock deal, adding to its stable of direct-to-consumer assets.

The cash-strapped Digital Brands has said the deal closing is probable but warned it is not certain to complete the deal.

Now a vendor is demanding it be paid before Digital Brands closes on Sundry or expands any further.

In a letter to Digital Brands’ board, Climas Lo, the CEO of Trade Harvest Industrial, asked that the company be paid for product shipments going back to 2019 and 2020 before Digital Brands carries out any further expansion plans.

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