Those of you who live in NYC know that Marc Ecko was plotting to open a huge “Cut & Sew” megastore on 42nd Street in Time Square.  The three story flagship Ecko storefront was marked by an absolutely humongous wallscape “coming soon” ad. According to the New York Post, Ecko was never able to get the project off the ground and had to break the lease earlier this year.  And even a few weeks prior to that  Ecko bagged its warehouse on 6th avenue in New York City.

Now it seems the company, which has been rumored for a while to be in financial turmoil is set to close its “Cut & Sew,” boutique in the Chelsea.

So how did they get to this point?  Well according to SoJones.com Ecko retained the services of Peter J. Solomon, re-fi expert earlier this year in an attempt to refinance its $170 million in debt.  Then the aformentioned New York Post article dropped in March which reported that Ecko had defaulted on a term loan from CIT.  In response to this, Ecko’s chief marketing officer, Michael Golden, told the post:

“We’re pretty confident that this isn’t an issue that’s life-threatening at all … In our case, we have more than enough assets to pay off that term loan, and we have more than enough time.”

Now the closing of the Tribeca store.  While Golden may be busy painting a sweet picture the CIT term loan still is hanging in the balance and if Ecko isn’t able to raise the capital by next month they may be foreced into bankruptcy essentially ending the reign of one of hip hop’s pioneering clothing labels.  ITS REAL!