- Angela Gonzalez-Rodriguez |
New York – US-based Charming Charlie Holdings Inc. has announced it will close all its stores after going bankrupt for the second time in less than two years. More than 3,000 full- and part-time employees could lose their jobs.
The fashion accessory chain filed for Chapter 11 protection in Delaware with plans for going-out-of-business sales at about 261 stores, according to court documents. The chain expects the liquidation to take about two months, the same documents show.
Founded in Houston in 2004, Charming Charlie closed about 100 stores during its previous bankruptcy, which ended in April 2018, recalls ‘USA Today’.
The retailer used that process to cut debts and reduce other running costs, but "these efforts simply were not sufficient to stabilize" the business and deliver profits, the company said last Thursday in a court filing.
After emerging from its previous bankruptcy in April 2018, the company “continued to face challenges that make it impossible for Charming Charlie to continue as a going concern,” the company’s chief financial officer said in the court filings.
The retailer also explained that it faced "unsustainable operating expenses, including onerous leases" at a time when many brick-and-mortar stores are battling with online retailers.