On Thursday, Charming Charlie Holdings Inc. filed for Chapter 11 bankruptcy and plans to close its roughly 260 stores, which span malls across the U.S. The company is working to liquidate its assets, which they expect to take about two months, according to the court filing. Going-out-of-business sales are already underway in many locations, with all stores expected to close no later than August 31.
Charming Charlie, which has $82 million in debt and employs about 3,300 people, also cited "significant headwinds given the continued decline of the bricks-and-mortar retail industry".
Charming Charlie is closing up shop.
Founded in 2004, Charming Charlie was known for arranging its merchandise by color, with its array including as many as 26 hues. The retailer's e-commerce site has already stopped taking orders.
In a DE bankruptcy court filing, Charming Charlie disclosed that it has only $6,000 in cash on hand.
Hilco Merchant Resources LLC and SB360 Capital Partners were handling liquidation sales, which were expected to generate about $30 million in revenue, court documents show. That effort at restructuring its operations and debt "were simply not sufficient to stabilize the debtors' businesses and ensure long-term profitability", according to its latest bankruptcy filing. Toys R Us, facing tough competition from Amazon and several billions of dollars of debt, filed for Chapter 11 reorganization in September of 2017 and liquidated its businesses past year.