Charlotte Russe is evaluating “out of business” sales with a busty women’s clothing retailer ready to close more than 400 stores across the United States and now Charlotte Russe Closing down.
A retailer spokesman confirmed he was planning to liquidate. Charlotte Russe Closing filed for Chapter 11 bankruptcy protection in February and said it would close 94 stores. The company now plans to close its remaining 416 stores in 44 states and Puerto Rico, with a stock of $ 160 million for sale at very discounted prices, the SB360 Capital Partners liquidator said Thursday (see here for a complete list of shops).
The bankruptcy court on Wednesday approved the sale of the company’s goods to the liquidation company. The intellectual property rights of Charlotte Russe Closing and its rights in the leases will be sold separately.
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But these hopes fell this week when the liquidator SB360 Capital Partners won an auction at the bankruptcy court for Charlotte Russe’s $ 160 million stock and other assets. The closure plan was approved on Wednesday by a bankruptcy court in Delaware.
The deal left $ 175 million in debt in 2014. The loan grew by $ 80 million in subsequent years. The company planned to get an initial public offering that year to repay a large portion of the loan. But a drop in sales led to an indefinite postponement of the IPO for Charlotte Russe.
SB360 – Which describes itself as “one of the oldest and most experienced companies in the country that closes down stores and graduated from corporate sales,” announced that Charlotte Russe will start selling business in all stores until Thursday. The company will accept gift cards until March 21, and all its stores will be closed by the end of April.