Equity-Backed Women’s Apparel Retailer Charlotte Russe Files for Bankruptcy
Women’s apparel chain Charlotte Russe filed for chapter 11 bankruptcy on Sunday, according to a press release issued Monday. The company will close approximately 94 stores, including some locations of the company’s Peek Kids stores. Charlotte Russe said it was continuing to pursue a sale of the business after receiving a $50 million debtor-in-possession financing commitment.
For many years after it was founded in 1975, Charlotte Russe was a shopping center and mall mainstay, especially popular with young women as fast fashion took off in the 1990s. But like many retail chains struggling against an era of online shopping, it eventually took on debt assistance. In 2009, Advent International, a private equity firm, spent $380 million to buy up the women’s clothing chain. Last year, the company struck a debt-reduction deal to bring its debt down to $124 million, according to CNBC.
Charlotte Russe operates more than 500 retail locations across the United States, and for now, Charlotte Russe and Peek Kids stores, which sell clothing and accessories for infants, babies, and children, are still open. Also still open and operational are the company’s websites, which will continue to serve customers as usual until further notice of action. The company promised more details on location closings and sales “in the near term.”