Only a year after expanding its footprint globally, apparel and accessories retailer Charming Charlie has filed for Chapter 11 bankruptcy and will shutter 100 stores by the end of the year.
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The company entered bankruptcy protection in an attempt to stabilize the business, with plans to restructure most of its term loans with lenders and equity sponsors to help reduce debt and simplify operations. Charming Charlie has more than 375 stores across the U.S. and Canada.
“We are confident that by reducing the size and scale of our business, we can focus on the core strengths that make the company successful," Charming Charlie interim CEO Lana Krauter said in a statement.
The retailer has secured $20M in financing and has a $35M asset-backed debtor-in-possession loan agreement with its lenders. Both of the loans are intended to aid the company in meeting its financial obligations during the bankruptcy case. The women's apparel and accessories retailer is also seeking court permission to continue paying employee wages, health and benefits without interruption during this period.
“Our goal is to move through this process quickly and emerge as a stronger, more focused organization that is better positioned to succeed in the rapidly changing retail environment," Krauter said.
The majority of its stores and website will remain open throughout the holidays.
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