Coldwater Creek files for bankruptcy
April 11, 2014 04:24 PM
After six months of looking for any alternative—including a buyer or investors—women’s apparel retailer Coldwater Creek Inc. today filed for Chapter 11 bankruptcy. It will begin liquidating inventory in early May, after which it will shutter all stores and its e-commerce site for good, the company says.
“This difficult decision follows a comprehensive strategic and financial review of the business,” says Coldwater Creek president and CEO Jill Dean. “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.”
The retailer did not immediately respond to a request for further comments.
Coldwater Creek is No. 133 in the Internet Retailer 2013 Top 500 Guide. In 2012, it booked $167.6 million in web sales, down 5.74% from $177.8 million in 2011. In its most recent earnings report, for the third quarter of fiscal 2013 ended Nov. 2, the retailer reported a net loss of $23.8 million, which includes both online and offline sales.
To facilitate the process of closing down the company, Wells Fargo Capital Finance, an existing investor in Coldwater Creek, has committed $75 million in “debtor-in-possession” financing to the retailer, it says.