Photo: Richard B. Levine/Levine Roberts/ZUMA Press
In apress release, the company announced on Monday that it voluntarily filed for relief under Chapter 11 bankruptcy and plans to close 94 out of it’s 500 store locations, which also includes stores from their kids’ line, Peek Kids.
The company is seeking a sale of the business, but for now, the website and brick and mortar locations will remain open thanks to the $50 million the company received from lenders. News of the upcoming closures will be announced “in the near term.”
According toCNN, Charlotte Russe’s court filing reported that it “suffered from a dramatic decrease in sales and in-store traffic” and struggled with “the burden of maintaining a large brick-and-mortar presence.”
It also acknowledged that marketing strategies “failed to connect” with their customer. And that it “shifted too far towards fashion basics” which made them “outpace the rapidly evolving fashion trends.”
This is just the latest in staple mall brands to suffer from poor sales. Other beloved stores to declare bankruptcy within the past few years have been theaccessories brand, Claire’s, jeans retailerTrue Religion, shoe store Payless,women’s apparel line Bebeandkids’ clothing boutique, Gymboree.
The size-inclusive women’s clothing line,Fullbeauty, also just filed for bankruptcy this week. Fullbeauty Brands Inc. filed for Chapter 11 status on Sunday.
source: people.com
