Charlotte Russe files for bankruptcy, to close 94 stores

Women’s fashion retailer Charlotte Russe Holdings Corporation together with its subsidiaries has voluntarily filed for relief under Chapter 11 of the bankruptcy code in the U.S. Bankruptcy Court. The company said in a statement that it intends to use these proceedings to facilitate closure of it 94 stores, while continuing to pursue a going-concern sale of the business and assets.

Charlotte Russe and Peek stores and online platforms are currently open and continue to serve customers. The company added that it has received a commitment for a debtor in possession financing in the maximum amount of 50 million dollars. If approved by the bankruptcy court, the financing will support the company's operations and administration during the Chapter 11 proceedings.

Charlotte Russe operates in 48 states, Hawaii and Puerto Rico through their online store and mobile app, as well as over 500 brick-and-mortar stores located in malls and outlet centres. In 2016, the company expanded to include Peek Kids, operating 10 stores and an ecommerce site.

Picture:Facebook/Charlotte Russe