Coldwater Creek files bankruptcy, to close all stores

[Pardus]

http://articles.chicagotribune.com/...1_1_loehmann-clothing-retailer-several-stores

Women's clothing retailer Coldwater Creek Inc. on Friday filed for Chapter 11 bankruptcy after failing to find a buyer said it plans to close its stores by early summer.

Coldwater Creek joins other retailers to seek protection from creditors in recent months as consumers keep a lid on spending.

The company said it plans to wind down its operations over the coming months and begin going-out-of-business sales in early May, before the traditionally busy Mother's Day weekend.

Coldwater Creek said it has 365 stores and employs about 6,000 people.

Coldwater Creek has several stores in the Chicago area, including stores at The Arboretum of South Barrington, Deer Park Town Center, Oakbrook Center, Burr Ridge Village Center, Orland Park Crossing, The Promenade Bollingbrook, Algonquin Commons, Geneva Commons, District of Cherryvale in Rockford, Main Street Promenade in Naperville and at Old Orchard Mall in Skokie.

“While we are extremely disappointed with this outcome, the company's declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action,” Chief Executive Jill Dean said in a statement.

The Sandpoint, Idaho-based company has assets of $278.5 million and liabilities of $361.3 million, according to its Chapter 11 petition filed with the U.S. Bankruptcy Court in Wilmington, Delaware.

Several U.S. retailers have filed for bankruptcy protection since late last year as consumers curb spending and visit malls less often.

Among those to file are pizza chain Sbarro LLC, and women's clothing retailers Ashley Stewart Holdings Inc, Dots LLC and Loehmann's Inc. Dots and Loehmann's which have also decided to close.

Coldwater Creek was founded in 1984 as a catalog-based marketer. Sales at stores open at least a year, a key gauge of retail performance, plunged 16.8 percent in the third quarter ended Nov. 2.

The company had in October announced plans to seek strategic alternatives, including a possible sale, and solicited more than 75 parties for proposals.

“Having been unsuccessful despite their Herculean efforts and in the face of sustained weak business performance, the debtors have concluded (that) a liquidation through Chapter 11 is their most appropriate remaining option,” Chief Financial Officer James Bell said in a court filing.

Coldwater Creek said it received a $75 million debtor-in-possession financing commitment from Wells Fargo & Co, a current lender. The liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources will manage the clearance sales.

Coldwater Creek shares closed at 19 cents on Thursday. Shareholders are expected to receive nothing in the bankruptcy.

 

[Bateluer]

Who?

 

[Mai72]

I've never heard of this store.

:hmm:

 

[NFS4]

My mother-in-law loves that store.

 

[JMapleton]

Where will old ladies shop now?

 

[soulcougher73]

Saw that coming a mile away

 

[MagnusTheBrewer]

together with the fact that we have exhausted all other possibilities,

Yeah, I always love it when companies say this when they go under. How many of their 6000 employees were told about their financial situation when it might have done some good?

 

[wabbitslayer]

Where will old ladies shop now?

They'll all go to Abercrombie and Fitch now. Or Forever 21, or whatever "ohmygerd we are so cool" is deemed by the media to be next up.


Always sad to see a place that offers quality well-made clothing close up shop.

 

[Murloc]

never heard about it.

If they do a liquidation, it's a good occasion for old ladies I guess?

 

[Mixolydian]

Old lady clothes.

 

[PottedMeat]

My mother-in-law loves that store.

ah so it's like wayne brady

 

[JManInPhoenix]

They have one of those in the yuppie mall by us. I have seen the sign but thought it was a rocky mountain themed restaurant, not a clothing store 😛

 

[JMapleton]

They'll all go to Abercrombie and Fitch now. Or Forever 21, or whatever "ohmygerd we are so cool" is deemed by the media to be next up.


Always sad to see a place that offers quality well-made clothing close up shop.

LOL. You must be old. You'd be hard pressed to find anyone under 30 in those stores.

In fact, most people over 20 wouldn't step foot in A&E.

 

[SKORPI0]

Coldwater Creek has several stores in the Chicago area, including stores at ..... Orland Park Crossing.

That store near my place (4 blocks away/0.3 miles) is practically dead. I don't see any shoppers going there at all. :\

 

[Rudee]

That stock chart reminds me of Blackberry`s chart.

 

[Meghan54]

Yeah, I always love it when companies say this when they go under. How many of their 6000 employees were told about their financial situation when it might have done some good?

So, how many of their 6000 employees were so clueless that empty stores, plunging sales, stock price in the toilet, didn't give them at least an inkling of the company's troubles? And the company has been shopping itself for over 6 months to potential buyers....guess that was a secret, too, eh?

The employees were not in the dark about the dire situation of the company, I assure you, unless all were absolutely oblivious about anything.

 

[gorcorps]

Drat... My mom likes that store. It was an easy stop for a gift

 

[Pulsar]

I must summon the spectre of mcpwned since this store has outlets in Chicago so that he might document this as the next step of impending doom. I'm certain $10/gallon gas and $20 / quart milk will follow. After that, they'll begin demanding ID's for vinegar! REPENT!