Destination Maternity files for banktrupcy
Destination Maternity Corp. filed for chapter 11 protection on Monday, blaming declining birth rates, expensive leases and leadership turnover.
The company could proceed to close up to 210 locations, according to a court filing accessed by the Wall Street Journal.
Destination Maternity Corp, which operates brands Motherhood Maternity and A Pea in the Pod in addition to its namesake brand, listed assets in the range of $260 million in assets and $240 million in debt, the court filing showed.
The retail group, which has had five CEOs in the past five years, recorded an 11.9% decrease in revenue in the last quarter, ended August 3, and a net loss of $3.5 million despite cost-cutting initiatives. It operates 446 stores in the United States, Canada and Puerto Rico.
Copyright © 2021 FashionNetwork.com All rights reserved.