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Published
Feb 5, 2019
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Charlotte Russe Holdings Corp files for bankruptcy

Published
Feb 5, 2019

After nearly a month of anticipation, teen retailer Charlotte Russe Holdings Corporation and its subsidiaries have announced that the company has voluntarily filed for Chapter 11 bankruptcy.

Charlotte Russe


According to a press statement, Charlotte Russe will use the proceedings to close about 94 store locations, while continuing to pursue a going-concern sale of the business and assets. The company filed in the U.S. Bankruptcy Court for the District of Delaware on February 3 of 2019.  

The company's Charlotte Russe and Peek stores, as well as its online platforms, will remain open for the time being. In addition, the company has also filed to operate its business in the ordinary course during the Chapter 11 proceedings, including the continuation of employee wages and benefits payments, amounts due to shippers and warehousemen, utility service providers and taxing authorities. Charlotte Russe has also sought authorization from the court to continue to honor certain customer programs. 

Charlotte Russe has received a commitment for a debtor in possession financing in the maximum amount of $50 million, which needs to be approve by the bankruptcy court. If approved, it will support the company's operations and administration during the legal proceedings. 

The company said it will provide more details about the plans for the closing locations of Charlotte Russe and Peek and their store closing sales in the near term.

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