Charlotte Russe files petition for bankruptcy relief
SAN JUAN – Charlotte Russe Holdings Corp. filed for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware Sunday. The fashion company said it intends to use the proceedings to “facilitate an orderly wind-down of a group of approximately 94 of its store locations, while continuing to pursue a going-concern sale of the business and assets.”
The Charlotte Russe brand offers apparel, shoes and accessories for young women. It operates in 48 states, Hawaii and Puerto Rico online, as well as from 500 stores in malls and outlet centers, including four stores in Puerto Rico. In 2016, the company expanded to include Peek Kids, operating 10 stores and an ecommerce site.
The company said it will provide more details about the plans for the closing locations and their store closing sales “in the near term.” All stores and online platforms continue open.
“Charlotte Russe has received a commitment for a debtor in possession financing in the maximum amount of $50 million,” the company’s release reads. “If approved by the Bankruptcy Court, the financing will support the Company’s operations and administration during the Chapter 11 proceedings.”
It added that motions with the U.S. Bankruptcy Court have been filed “seeking authorization to operate its business in the ordinary course during the Chapter 11 proceedings, including, without limitation, authority to continue payment of employee wages and benefits, and amounts due to shippers and warehousemen, utility service providers and taxing authorities.” The company is also seeking authorization to continue to honoring “certain customer programs.”
For more information regarding Charlotte Russe’s Chapter 11 filing and the claims process, visit www.donlinrecano.com/charlotterusse or write to the company’s claims agent, Donlin Recano.
Cooley LLP is serving as the company’s legal counsel, Berkeley Research Group is serving as its financial adviser, and Guggenheim Securities LLC is serving as its investment banker.