Fashion and accessory retailer Charming Charlie has announced it's filed for bankruptcy and is closing all of its 261 stores.
The company has ended online sales and begun going-out-of business sales. It expects to close all locations by the end of August, according to a Thursday court filing.
This is the second time in two years the Houston-based retailer has filed for bankruptcy. Charming Charlie closed 100 stores during its previous bankruptcy, which ended in April 2018, USA Today reported.
About 3,000 Charming Charlie employees risk losing their jobs.
In its filing, officials with the company said efforts to restructure the company's operations and debt after the first bankruptcy "were simply not sufficient to stabilize the debtors' businesses and ensure long-term profitability." Its officials also cited "significant headwinds given the continued decline of the bricks-and-mortar retail industry" as a reason for its closure.
Charming Charlie is $82 million in debt, according to the filing. It reported having $6,000 cash on hand and estimated liquidation sales would bring in $30 million in revenue.
Founded in 2004, Charming Charlie has stores in malls in 38 states. It's known for organizing its merchandise by color, and its target demographic is middle-aged women, Bloomberg reported.
Charming Charlie's closure is the latest in a succession of recent retail closures, which include Toys R Us shuttering last year and Dress Barn announcing closure two months ago.
About the Author
