Charming Charlie to close all stores on second bankruptcy filing
today Jul 12, 2019
Accessories retailer Charming Charlie will close all of its stores after filing for its second bankruptcy.
The latest filing comes on the heels of a previous Chapter 11 filing issued by the company in 2017. After this first bankruptcy, the company announced it had entered into a restructuring agreement, securing $20 million in debtor-in-possession financing from a majority of its existing term loan lenders and entering into a $35 million asset-backed loan with current lenders. The company closed about 100 stores during its primary bankruptcy, and exited bankruptcy in April last year.
In 2018, the company announced several changes to its executive suite in a push for restructuring, promoting Rob Adamek to the role of chief operating officer; naming Joy Garcia as senior vice president and chief marketing officer; and increasing Jason Warr's responsibilities as vice president of e-commerce.
According to a court filing, the company’s efforts to-date “were not sufficient to stabilize" the retailer in the face of "unsustainable operating expenses, including onerous leases.”
As a result of the present shutdown, more than 3,000 full- and part-time employees could lose their jobs.
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