Fashion

Charming Charlie to close all stores after the second bankruptcy in two years


New York – US-based Charming Charlie Holdings Inc. has announced it will
close all its stores after going bankrupt for the second time in less than
two years. More than 3,000 full- and part-time employees could lose their
jobs.

The fashion accessory chain filed for Chapter 11 protection in Delaware
with plans for going-out-of-business sales at about 261 stores, according
to court documents. The chain expects the liquidation to take about two
months, the same documents show.

Founded in Houston in 2004, Charming Charlie closed about 100 stores
during its previous bankruptcy, which ended in April 2018, recalls ‘USA
Today’.

The retailer used that process to cut debts and reduce other running
costs, but “these efforts simply were not sufficient to stabilize” the
business and deliver profits, the company said last Thursday in a court
filing.

After emerging from its previous bankruptcy in April 2018, the company
“continued to face challenges that make it impossible for Charming Charlie
to continue as a going concern,” the company’s chief financial officer said
in the court filings.

The retailer also explained that it faced “unsustainable operating
expenses, including onerous leases” at a time when many brick-and-mortar
stores are battling with online retailers.



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