US fashion retailer Charlotte Russe Holdings is to close all of its remaining 416 store locations – just a month after the company filed a voluntary Chapter 11 bankruptcy petition.
At the time of the bankruptcy filing, the company said it planned to shutter about 94 stores. Now liquidator SB360 Capital Partners, which won the auction in bankruptcy court for Charlotte Russe’s US$160m worth of inventory, and other assets, says the ‘going out of business’ sale will start immediately in all stores across 44 states and Puerto Rico.
The company’s intellectual property and rights to its leases will be sold separately.
Charlotte Russe was founded in 1975. Known as a shopping destination for young women seeking apparel, shoes, and accessories, sales at Charlotte Russe reached their peak in 2016 at $986m. Also in 2016, the company expanded to include Peek Kids, operating 10 stores.
The San Francisco-based teen and young women’s wear retailer was acquired by private equity firm Advent Corporation for US$380m in 2009, a move that left it with $175m of debt. An initial public offering (IPO) planned to pay off much of that loan had to be postponed following a downturn in sales.