Boston, MA 04/11/2014 (wallstreetpr) – Coldwater Creek Inc. (NASDAQ:CWTR) has filed for Chapter 11 bankruptcy, on Friday. The move came after the women’s clothing retailer failed to find a buyer. It also announced plans to shut down all its stores by early summer.
The society is joining other retailers to look for shelter from creditors in the forthcoming months. Consumers are required to hold a lid on the outlay. Coldwater Creek will reduce its operations in the upcoming months and plans to go out of business by early May.
Present situation of the company
At present, the retailer has around 365 shops and employs approximately 6000 people. It has several stores in the Chicago area, besides numerous other places.
Chief Executive of the company Jill Dean said in a statement they were exceedingly disappointed with the outcome and the company’s declining liquidity position. The challenging retail environment had also given to establishing such a move and there were probably no other possibilities.
According to the Chapter 11 petition filed with the U.S. Bankruptcy Court in Wilmington, Delaware, the Sandpoint, Idaho-based company has assets of $278.5 million and liabilities of $361.3 million.
Several other retailers have filed for bankruptcy
Of late, many U.S. retailers have filed for bankruptcy protection. This has mainly happened because customers are curbing their spending habits and visiting malls less often. Some of the companies that have filed for bankruptcy are Sbarro LLC, which is a pizza chain, women’s clothing retailers Ashley Stewart Inc, Dot’s LLC and Loehmann’s Inc. The latter two, have even decided to close.
Coldwater Creek Inc. (NASDAQ:CWTR) had announced in October 2013 that it was seeking strategic alternatives, including a possible sale of the company. This occurred after the retailer had plunged by 16.8% in its Q3 sales. Despite the Herculean efforts made by the company’s board, they have sustained weak business performances.
The company had received a $75 million debtor- in possession commitment from lenders, Wells Fargo & Co. Gordon Brothers Retail Partners and Hilco Merchant Resources will take care of the clearance sale.
Coldwater Creek Inc. (NASDAQ:CWTR) was founded in 1984 as a catalog based marketer. Present shareholders of the company are expected to receive nothing, in the present bankrupt state of the company.