Another store goes bust: Charming Charlie Holdings plans to close its closing 261 stores after submitting for bankruptcy safety for the second time in a few years. On Thursday, the clothing and accessories dealer stated it had stopped online sales and expects to conclude its going-out-of-enterprise sales by using the stop of August.
Privately-held Charming Charlie, which had shops and operations in 38 states, shuttered about 100 shops in the course of its earlier bout in Chapter eleven financial disaster, which started in December 2017 and lasted till April 2018. That attempt at restructuring its operations and debt “have been sincerely not enough to stabilize the borrowers’ companies and ensure lengthy-time period profitability,” according to its modern-day bankruptcy submitting.
The enterprise expected to have approximately $19.Eight million in gift cards outstanding, and expects roughly $7.Eight million of that to be redeemed. It asked the financial disaster court for permission to honor present cards for 30 days.
Charming Charlie, which has $ eighty-two million in debt and employs about 3,300 humans, additionally mentioned: “considerable headwinds given the ongoing decline of the bricks-and-mortar retail enterprise.” It additionally faulted the impact of exchange price-lists for reduced client spending, in addition to the negative climate earlier in the 12 months for keeping could-be consumers at home.
Founded in 2004, Charming Charlie turned into regarded for arranging its merchandise via color, with its array such as many as 26 colors. The Houston-primarily based company on Thursday pronounced having approximately $6,000 in cash handy and said its deliberate liquidation income would bring in $30 million in sales. Second Avenue Capital and White Oak Commercial Finance provide $thirteen million in debtor-in-ownership financing to fund the business enterprise’s operations through the latest financial ruin. The retailer’s dying today’s in a string of such disasters is derived two months after Dress Barn stated it would its roughly 650 stores, and 12 months after Toys R Us closed keep and laid off approximately 33,000 employees.