Hilo Hattie Went Bankrupt - Bought by Maui Divers

Kathie Fry · 10-17-2008, 04:29 AM

Hawaii's retail giant, Hilo Hattie, filed for bankruptcy this month to help them recover from financial woes that left them with $21 million in assets and $23 million in debts. When Hilo Hattie announced their bankruptcy filing, they also announced they expected to move into the Royal Hawaiian Shopping Center in July of 2009 and give up their store on Nimitz Highway. The Chapter 11 filing allows them to continue operating their 7 stores in Hawaii and 2 stores in California, and avoid laying off any of their 256 employees.

Hilo Hattie was founded on the island of Kauai in 1963 by Jim Romig, and initially the name of the business was Kaluna Hawaii Sportswear. The company moved to Oahu in about 1965 and was renamed "Hilo Hattie" in 1979 after Hawaii entertainer Hilo Hattie (Clarissa Haili) died. In 2006 Hilo Hattie announced their plan to move into a 2-story, 20,000 square foot flagship store in the Royal Hawaiian Shopping Center in 2007, but that move has been on hold because of financial problems. In May of 2008 founder Jim Romig sold Hilo Hattie to Ted Nelson, the owner of 18 Fantastic Sam's hair salons on Oahu.

- Kathie

JGwinner · 10-22-2008, 02:26 PM

Oh, what a shame. I've bought things there just this year, and 16 years ago!

It's a fixture on Nimitz Highway!

== John ==

Kathie Fry · 10-25-2008, 06:42 AM

Hi John, and welcome to our new Hawaii forum!

The bankruptcy is not expected to be the end of Hilo Hattie. The company is hoping they can get their debts under control and open their new Waikiki store by July of 2009. Since that store will be closer to the majority of tourists visiting Hawaii, Hilo Hattie is optimistic about their future. The new store will be given a new name, "Hilo Hattie at the Beach" and the owners say it is being designed to provide a more authentic Hawaiiana experience (not sure what that means but it will be interesting to find out).

In February of 2006, when Hilo Hattie first announced their plans to build a $10 million flagship store in the Waikiki's Royal Hawaiian Shopping Center they said they were hoping to move by early summer 2007. I think they also said the new store would be larger then their Nimitz Store but I've seen conflicting artcles about that. At that time they didn't announce their plans for the Nimitz location, but if I remember right, they did say they were planning to refocus their Ala Moana Store on providing items Hawaii residents would be most interested in, and focus the new store on carrying items Hawaii visitors would be most interested in.

I have been waiting and watching for the Waikiki Hilo Hattie store to appear in Waikiki. I guess now we know why it never happened.

We hope you make it Hilo Hattie!

- Kathie

Kathie Fry · 05-19-2009, 05:00 PM

The Maui Divers Jewelry company offered to buy bankrupt Hawaiiana retailer Hilo Hattie for one million dollars and their offer has een accepted by the committee of unsecured creditors in Hilo Hattie’s Chapter 11 bankruptcy reorganization case. Maui Divers operates a jewelry concession side Hilo Hattie stores and it is the largest creditor on the committee, being owed about $1.25 million. Final acceptance of the offer must be approved by the bankruptcy judge. If the offer is approved Maui Divers will retain most of Hilo Hattie's 200 employees and invest at least $2 million in the store. They also expect to keep most of the local vendors supply merchandise to the store.
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10-17-2008, 04:29 AM	#1
Kathie Fry Forum Host Join Date: Oct 2008 Posts: 213	Hilo Hattie Went Bankrupt - Bought by Maui Divers Hawaii's retail giant, Hilo Hattie, filed for bankruptcy this month to help them recover from financial woes that left them with $21 million in assets and $23 million in debts. When Hilo Hattie announced their bankruptcy filing, they also announced they expected to move into the Royal Hawaiian Shopping Center in July of 2009 and give up their store on Nimitz Highway. The Chapter 11 filing allows them to continue operating their 7 stores in Hawaii and 2 stores in California, and avoid laying off any of their 256 employees. Hilo Hattie was founded on the island of Kauai in 1963 by Jim Romig, and initially the name of the business was Kaluna Hawaii Sportswear. The company moved to Oahu in about 1965 and was renamed "Hilo Hattie" in 1979 after Hawaii entertainer Hilo Hattie (Clarissa Haili) died. In 2006 Hilo Hattie announced their plan to move into a 2-story, 20,000 square foot flagship store in the Royal Hawaiian Shopping Center in 2007, but that move has been on hold because of financial problems. In May of 2008 founder Jim Romig sold Hilo Hattie to Ted Nelson, the owner of 18 Fantastic Sam's hair salons on Oahu. - Kathie

10-22-2008, 02:26 PM	#2
JGwinner Junior Member Join Date: Oct 2008 Posts: 3	Oh, what a shame. I've bought things there just this year, and 16 years ago! It's a fixture on Nimitz Highway! == John ==

10-25-2008, 06:42 AM	#3
Kathie Fry Forum Host Join Date: Oct 2008 Posts: 213	More About Hilo Hattie Hi John, and welcome to our new Hawaii forum! The bankruptcy is not expected to be the end of Hilo Hattie. The company is hoping they can get their debts under control and open their new Waikiki store by July of 2009. Since that store will be closer to the majority of tourists visiting Hawaii, Hilo Hattie is optimistic about their future. The new store will be given a new name, "Hilo Hattie at the Beach" and the owners say it is being designed to provide a more authentic Hawaiiana experience (not sure what that means but it will be interesting to find out). In February of 2006, when Hilo Hattie first announced their plans to build a $10 million flagship store in the Waikiki's Royal Hawaiian Shopping Center they said they were hoping to move by early summer 2007. I think they also said the new store would be larger then their Nimitz Store but I've seen conflicting artcles about that. At that time they didn't announce their plans for the Nimitz location, but if I remember right, they did say they were planning to refocus their Ala Moana Store on providing items Hawaii residents would be most interested in, and focus the new store on carrying items Hawaii visitors would be most interested in. I have been waiting and watching for the Waikiki Hilo Hattie store to appear in Waikiki. I guess now we know why it never happened. We hope you make it Hilo Hattie! - Kathie

05-19-2009, 05:00 PM	#4
Kathie Fry Forum Host Join Date: Oct 2008 Posts: 213	Maui Divers Buys Hilo Hattie for $1 Million The Maui Divers Jewelry company offered to buy bankrupt Hawaiiana retailer Hilo Hattie for one million dollars and their offer has een accepted by the committee of unsecured creditors in Hilo Hattie’s Chapter 11 bankruptcy reorganization case. Maui Divers operates a jewelry concession side Hilo Hattie stores and it is the largest creditor on the committee, being owed about $1.25 million. Final acceptance of the offer must be approved by the bankruptcy judge. If the offer is approved Maui Divers will retain most of Hilo Hattie's 200 employees and invest at least $2 million in the store. They also expect to keep most of the local vendors supply merchandise to the store. ________________________________

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