Charming Charlie Will File For Chapter 11 Bankruptcy
Charming Charlie will close all 261 of there stores and file for chapter 11 bankruptcy. The clothing retailer claims to only have $6,000 in the bank.
Charming Charlie currently has an estimated $82 million of debt. This will be their second bankruptcy filling in 2 years.
“The Debtors once again face issues similar to those that precipitated filing the Prior Cases: unsustainable operating expenses, including onerous leases, and constrained liquidity under our loan documents. This lack of liquidity has resulted in reduced inventory, further exacerbating the Debtors’ lack of availability under their asset based loan. These factors combined with the continued decline of the brick-and-mortar retail industry have made it increasingly difficult for the Debtors to support their cost and capital structure.” – Charming Charlie Official Statement
Charming Charlie official liquidation sale will begin in August 2019.