Christopher & Banks, a women’s-clothing chain, said Thursday that it filed for voluntary Chapter 11 bankruptcy and may close all of its 449 stores.
That makes the Plymouth, Minn., company yet another victim of the covid pandemic, joining J.C. Penney, Lord & Taylor and Brooks Brothers, among many others.
Christopher & Banks (CBKC) shares recently traded at 4 cents, down 43%.
The chain said in a statement that it filed its Chapter 11 petition in U.S. Bankruptcy Court for the District of New Jersey.
“The company expects to close a significant portion, if not all, of its brick-and-mortar stores and, in connection therewith, the company has launched a store closing and liquidation process,” Christopher said in a statement.
“The company, however, will continue to operate its business in the ordinary course in the near term, and the company is in active discussion with potential buyers for the sale of its e-commerce platform and related assets and expects to file the appropriate motion shortly.”
Chief Executive Keri Jones said that “[since] the start of the covid pandemic, we have taken aggressive steps to protect our business while continuing to serve our customers in a healthy and safe environment.”
He added that “despite the tremendous advancements we have made in executing our strategic plan, due to the financial distress resulting from the pandemic and its ongoing impact, we elected to initiate this process and pursue a potential sale of the business in whole or in part to position the company for the future.”
In a court declaration, he said, “Unfortunately, given the debtors’ continued operating losses, decline in sales and the limited runway, the debtors were unable to execute on any out of-court solution for their liquidity constraints.”