Charlotte Russe will close all of its stores and is in negotiations to sell its intellectual property, the company confirmed Wednesday.
“We are partnering with the buyer and remain in talks to sell the (intellectual property), are optimistic about the future of the brand, and remain in ongoing negotiations with a buyer who has expressed interest in a continued brick and mortar presence to continue to serve our loyal customers in the future,” the fashion retailer said in a statement to USA TODAY.
In a court hearing in Wilmington, Delaware, on Wednesday, Judge Laurie Selber Silverstein approved the sale of Charlotte Russe’s assets to SB360 Capital Partners LLC, a liquidation company.
According to court documents, store liquidation sales “shall commence no later than March 7” and end “no later than April 30.”
Like with other liquidation sales, all sales are final.
SB360 Capital Partners, describes itself on its website as “one of the oldest, most experienced companies in the country conducting Store Closing and Going Out of Business Sales.” It’s an affiliate of the Schottenstein family, which also owns DSW Inc. and American Eagle Outfitters.
Charlotte Russe Holdings had been teetering on the edge of bankruptcy for some time, having announced a deal to renegotiate certain debts more than a year ago.
The San Diego-based mall chain filed for Chapter 11 bankruptcy protection in early February and outlined plans to close 94 stores. The chain also put itself up for sale and said if it didn’t find a buyer it would liquidate.
The company, which also controls Peek children’s clothing stores, caters its items toward women’s fashion and has more than 500 stores in 49 states and Puerto Rico. In its filing, the company said it had received a bankruptcy financing package worth up to $50 million to help it continue operating.
The bankruptcy marks the latest in a series of similar cases among mall retailers that have been unable to identify a sustainable path amid declining foot traffic and intense digital competition.
The company has more than 8,700 employees.
Source: USA Today