US-based fashion accessory retailer Charming Charlie has announced plans to close all of its 261 stores, across 38 states, in the US.
The closure announcement comes after the retailer filed for bankruptcy on 11 July. This is the second time in two years that Charming Charlie has filed for Chapter 11. It previously filed for bankruptcy in 2017 and emerged from it last year.
In its filing, with the United States Bankruptcy Court District of Delaware, the retailer said that the difficult decision follows several cost-reduction measures and closing of around 100 underperforming stores.
Charming Charlie said: “These efforts simply were not sufficient to stabilise the debtors’ [Charming Charlie Holdings] businesses and ensure long-term profitability. As the court is aware, the debtors [Charming Charlie Holdings] have also faced significant headwinds given the continued decline of the brick-and-mortar retail industry. The debtors [Charming Charlie Holdings] also faced a number of additional challenges, all as set forth in greater detail in the First Day Declaration.”
The company is also offering 20-50% price reductions on various products, including jewellery, clothing, handbags, accessories home décor and more. The sale features various deals across all stores, all products and all departments.
The company expects such sales and store closings to be completed and the properties vacated by 31 August this year.
The company has selected a joint venture of Hilco Merchant Resources and SB360 Capital Partners to conduct store closing sales.