Retailer Delia’s to file for bankruptcy amid plummeting store and web sales
December 5, 2014 11:53 AM
Dec. 5 (Bloomberg) -- Delia’s Inc., the struggling clothing chain that caters to teenage girls, said it will file for Chapter 11 bankruptcy protection and liquidate all merchandise after efforts to raise financing or find a buyer foundered.
Delia’s will seek bankruptcy protection in the “very near term,” according to a statement from the New York-based company today. The retailer has entered into an agreement with Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC, to dispose of assets, including fixtures and equipment. The shares sank as much as 87 percent to 1.5 cents today.
The company, which sells merchandise at stores and online, has reported a loss in each of its last fiscal five years amid sluggish mall traffic and slow web site orders.
Delia’s has been running low on cash and said in September that it had received several inquiries about a takeover or merger, or debt or equity financing. Those efforts were unsuccessful, the company said today.
The retailer will seek the bankruptcy court’s approval to close all existing stores and distribution centers, according to today’s statement.
Delia’s is No. 381 in the Internet Retailer Top 500 Guide. Web sales at Delia's plummeted from $87.5 million in 2009 to $37.2 million in in 2013.