US fashion retailer Charlotte Russe Holdings has filed a voluntary Chapter 11 bankruptcy petition in the US, as part of which it plans to shutter about 94 stores.
In a statement yesterday (4 February), the company said that together with its subsidiaries it has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
Charlotte Russe added that these proceedings will enable it to wind-down 94 of its 500 store locations while continuing to pursue a going-concern sale of the business and assets.
The firm has received a commitment for a debtor in possession financing in the maximum amount of US$50m. If approved by the Bankruptcy Court, the financing will support the company’s operations and administration during the Chapter 11 proceedings.
The company says its Charlotte Russe and Peek Children’s stores and online platforms remain open, and that it will provide more details about the closing locations in the near term.
The clothing chain is the latest retailer to file for bankruptcy protection this year, and joins a list that includes US children’s apparel retailer Gymboree Group and general merchandise retailer Shopko.