Tuesday, April 15, 2014
The women’s clothing retailer Coldwater Creek has filed for Chapter 11 bankruptcy and plans to close all of its stores, following going-out-of-business sales to be held in the coming months.
The clothing chain operates stores in the Eastwood Mall in Niles and the Grove City Outlet Mall in Mercer County, Pa.
Over the past six months, Coldwater Creek considered its options, including selling the company. But the Sandpoint, Idaho-based company was unable to find a buyer or a source of capital to fund its turnaround efforts.
It’s stores and website are still operating, but the company expects to begin liquidating its inventory through sales in early May.
“This difficult decision follows a comprehensive strategic and financial review of the business. The Board of Directors has determined that the actions we are taking represent the best path forward for Coldwater Creek and its stakeholders,” Jill Dean, president and CEO, said in a statement. “While we are extremely disappointed with this outcome, the Company’s declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action.”
Inventory liquidators Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC will manage Coldwater Creek’s clearance sales, but the plan does not contemplate any recovery for the company’s stockholders.
The liquidation plan must still be approved by the bankruptcy court.
The company received a $75 million commitment of “debtor-in-possession” financing from its current lender, Wells Fargo, to assist in the liquidation process.
Coldwater Creek filed in the U.S. Bankruptcy Court in Wilmington, Delaware.