Coldwater Creek has filed for Chapter 11 bankruptcy in a Delaware federal court after poor sales numbers at its retail locations have put the women’s clothing retailer in excessive debt that the company says it can not recover from. The chain will now begin the process of shutting down its operations.
Officials with Coldwater Creek say that they spent the past six months talking with advisors and looking for either a source of capital income or a buyer to absorb the retailer according to the LA Times. Coldwater Creek said in a statement that it had been “engaged in a thorough analysis of all potential alternatives”, but it seems no alternative answer to help turn the struggling company around was foud.
In its Chapter 11 bankruptcy filing, Coldwater Creek listed $278.5 million in assets for the company, and $361.3 million in unresolved debt. The Chicago Tribune reports that Coldwater Creek has 365 stores and employs over 6,000 people across the US. 339 of those employees work in the Coldwater Creek corporate offices.
With the bankruptcy filing now complete, Coldwater Creek will soon begin liquidating its stores in preparation for a complete closing of the retail chain. The women’s clothing company hopes to take advantage of the upcoming Mother’s Day shopping period, a historically busy time for Coldwater Creek. Liquidation sales are scheduled to begin shortly before Mother’s Day on May 11, with deep discounts aimed at shoppers looking to purchase gifts for the holiday.
Coldwater Creek started out as a catalog company specializing in women’s wear in 1984, later branching into retail store locations throughout the US in the 1990s. The company has not reported a fiscal year profit since 2006, and its last quarterly profit was reported back in 2010.
Much like many other retailers, Coldwater has struggled in recent years due to weak consumer spending following the economic downturn, and has been unable to rekindle its business since the turnaround. The company had tried cutting operating costs to keep afloat, closing several Coldwater Creek retail locations, but the retailer simply could not improve its profitability to a point which would stave off bankruptcy.
Accroding to the Chicago Tribune report, Coldwater Creek had solicited more than 75 parties for proposals that included possible sale of the company.
If you’re looking for a great deal for Mother’s Day, it looks like Coldwater Creek will be a great destination. Sadly, those deep discounts and spectacular deals will come at the cost of thousands of jobs for Coldwater Creek employees.