American clothing retail chain Charlotte Russe Holdings and its subsidiaries have voluntarily filed bankruptcy protection under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.

The company is also planning to close approximately 94 stores and will use the proceeds raised through bankruptcy to facilitate the closure process. It also intends to pursue a going-concern sale of the business and assets.

The retailer has received a commitment for a debtor in possession (DIP) financing for around $50m to support its operations and administration during the Chapter 11 proceedings. However, financing requires approval by the bankruptcy court.

As part of the Chapter 11 process, Charlotte Russe filed a number of customary motions seeking authorisation to support its operations during the court-supervised process.

Motions include the authority to continue paying employee wages and benefits, as well as amounts due to shippers and warehousemen, utility service providers and taxing authorities. It also seeks to continue honouring certain customer programmes.

“The company is also planning to close approximately 94 stores and will use the proceeds raised through bankruptcy to facilitate the closure process.”

American international law firm Cooley is serving as legal counsel, Berkeley Research Group is the financial advisor, and Guggenheim Securities will be an investment banker for Charlotte Russe.

Charlotte Russe currently operates 500 brick-and-mortar stores located in malls and outlet centres across 48 US states. It offers affordable on-trend apparel, shoes and accessories for all young women’s┬ásizes.

In 2016, the company unveiled a new brand Peek Kids, which currently operates ten stores and an e-commerce site.