Bibhu Mohapatra, a New York fashion designer whose clothing has been worn by first lady Michelle Obama, has put his fashion house into bankruptcy, the Wall Street Journal reported today. Bibhu LLC sought protection from creditors under chapter 11 in U.S. Bankruptcy Court in New York. Mohapatra’s company listed $81,000 in assets and more than $1.1 million in debt. Mohapatra said that the fashion house plans to continue doing business as usual and its planned debt restructuring would make the business more attractive for investors. He said that a restructuring of the company’s debts would allow Bibhu to add a second collection at a lower price point.
