The bankrupted branded apparel, footwear and brand management company Global Brands Group Holding Limited (GBG), has been formally put into liquidation by the Bermuda Supreme Court after football legend David Beckham and music and business impresario Sean “Diddy” Combs were forced to pivot in order to save their branded products.

They were not the only brands forced to make changes in the face of GBG’s declining revenues. Companies chasing GBG for money include Kenneth Cole Productions Inc and Authentic Brands Group.

About 30 brands are affected, according to Women's Wear Daily, the fashion-industry trade journal known as the "Bible of fashion". The portfolio includes Forever 21, Nine West, Eddie Bauer, Juicy Couture and more.

Trading in GBG stock was suspended this summer.

The company asked the Supreme Court in September that John C McKenna, of Finance and Risk Services Ltd, be appointed provisional liquidator with “limited powers” to facilitate a “holistic financial restructuring of the group and preserve the assets and value of the company”.

But last Friday, the company obtained a court order for the appointment of Mr McKenna as the provisional liquidator and with no limits on his powers.

He has already told shareholders not to expect any disbursements from the company holdings.

Mr McKenna’s statement issued on Monday on behalf of GBG said: “Under relevant Bermuda law governing the winding-up of the company, there can be no distributions to shareholders unless and until the company’s liabilities to its creditors have been fully satisfied.

“As at the date of this announcement, it appears that the company’s liabilities have exceeded the net realisable value of its assets and therefore it is unlikely that there will be any distribution to the company’s shareholders.”

The board reported on Thursday: “For the year ended 31 March, 2021, the group recorded an operating loss before impairment and other losses of approximately $222,753,000 (unaudited).

“The group also recorded non-cash operating losses from impairment and other losses of approximately $1,493,558,000 (unaudited), which is primarily attributable to impairment losses arising from the Chapter 11 proceeding of the US debtors and the administration filings, which include shortfalls from sale of assets and write-offs of intangible assets and other assets.”

The problems do not stop there. For the first six months of this year, there were operating losses of nearly $100 million.

Incorporated in Bermuda, GBG had a few weeks ago asked the court to appoint a provisional liquidator to help it to restructure.

The North American part of the company filed for Chapter 11 in New York this summer. In October, the German subsidiary filed for insolvency, and this month the UK business also fell.

The branded apparel and footwear company designs, develops, markets and sells products under a diverse array of owned and licensed brands.

Yahoo! has reported that GBG brands include Sean John, David Beckham, Le Tigre and others. It said that there are two pending lawsuits by Sean “Diddy” Combs, founder of Sean John, against GBG’s US division.

David Beckham Ventures Ltd is in the process of buying GBG’s 51 per cent stake in Seven Global and taking full control of the company for a reported $40 million.