Women’s apparel retailer Caché files for Chapter 11
February 4, 2015 05:01 PM
Women’s apparel retailer Caché Inc. is the latest retail chain to file for bankruptcy. In its filing for Chapter 11 bankruptcy protection, the company says it has liabilities of $50 million to $100 million and assets of $10 million to $50 million.
The filing Wednesday in U.S. Bankruptcy Court in Delaware lists numerous mall operators as among its biggest creditors, for rent. As of November, Caché operated 237 retail locations in 43 states, Puerto Rico and the U.S. Virgin Islands, along with Cache.com.
The retailer experienced problems last summer when it rolled out a redesign of Cache.com, which Caché executives later said caused a drop in web sales. The problems were not resolved for several weeks.
In 2013, Cache.com was No. 544 in Internet Retailer’s Second 500 Guide, with estimated 2012 web sales of $12.9 million. Other major creditors include UPS Supply Chain Solutions, to which Caché owes $986,819. Caché uses UPS Supply Chain Solutions to warehouse and fulfill Cache.com orders from that vendor’s fulfillment center in Hebron, KY.
Caché hasn’t been profitable in several years. In 2013 the retailer had a net loss of $34.4 million, nearly triple the net loss of $12.1 million in 2012. For the first nine months of 2014, it had a net loss of $31.2 million.
For the 39- week period ended Sept. 27, which is the latest financial report filed, net sales were $147.6 million compared to $160.8 million in the first nine months of fiscal 2013.
Caché joins a growing handful of retail apparel chains that have filed for bankruptcy in recent months, including Wet Seal Inc., Delia’s Inc. and Deb Shops. SkyMall Inc., the in-flight catalog and e-retailer, also filed for bankruptcy recently. SkyMall is No. 247 in Internet Retailer’s Top 500 Guide. Delia’s is No. 381. Wet Seal is No. 416.