Charlotte Russe Holdings Inc. voluntarily filed for relief under Chapter 11 of the bankruptcy code Sunday, the company announced in a press release.
The American clothing retailer is the latest victim in the ongoing "death of retail" as e-commerce forces brick-and-mortar companies to evolve and change business models.
The private company which owns 500 mall-based stores and employs more than 2,200 people across the country intends to use the bankruptcy proceedings to facilitate an orderly wind-down of 94 of its stores, while continuing to pursue a sale of the business and assets. The company hasn't yet decided which 94 stores around the country it will be closing.
Sixteen U.S. retailers filed for bankruptcy or announced liquidations in 2018, including Toys 'R' Us, Mattress Firm and Sears Holdings Inc.
Charlotte Russe received a commitment for a debtor-in-possession financing of $50 million that if approved by the bankruptcy court will support operations during the Chapter 11.
Charlotte Russe has several motions with the court seeking authorization to continue operating its business regularly, paying employees, vendors and landlords during Chapter 11 proceedings. The company is also seeking to continue to honor customer programs.
As of now, Charlotte Russe and Peek stores and online platforms will remain open to serve customers.