Charlotte Russe is closing all of its remaining 416 stores and going out of business, according to multiple reports.
On Wednesday, March 6, a bankruptcy judge in Delaware approved the sale of all of Charlotte Russe’s assets to SB360 Capital Partners, a liquidation company.
SB360 Capital Partners describes itself on its website as “one of the oldest, most experienced companies in the country conducting Store Closing and Going Out of Business Sales.” It’s a Schottenstein affiliate, which also owns DSW Inc. and American Eagle Outfitters.
“We are in partnership with SB360 Capital to liquidate the remaining inventory in a manner which maximizes the return to our creditors,” the company said in a statement to USA Today. “In addition, we remain in ongoing negotiations to sell the (intellectual property) to a buyer who has expressed interest in a continued brick and mortar presence.”
Charlotte Russe announced that it will be closing all its remaining stores. https://t.co/sQnGG9xkwe
— Twitter Moments (@TwitterMoments) March 7, 2019
For the last 44 years, Charlotte Russe has been a popular destination for young women and known for its fast fashion.
Inventory valued at $160 million will be sold at massive discounts in all the stores.
Sales begin Thursday, March 7, and gift cards will be honored through March 21, 2019. All stores are expected to close by April 30, according to Business Insider.
Everything will be included in the Going Out of Business Sale. Since items such as tops, bottoms, jeans, jackets, dresses, shoes, and accessories are highly desirable categories for the brand’s customers, they are expected to sell out fast.
All Charlotte Russe stores closing, ‘Going Out Of Business’ sale happening now at all locations #CharlotteRusse >> https://t.co/bx5SrnMbBG pic.twitter.com/8KLDhrOwNa
— ABC Action News (@abcactionnews) March 7, 2019
Aaron Miller, Executive Vice President of SB360, said in a news release, “Charlotte Russe established itself over the last four decades as a fashion destination for young women. A sale of this magnitude will bring never-seen-before values to a broad selection of today’s best fashion trends.”
Ziggy Schaffer, Executive Vice President of SB360, said, “For the loyal Charlotte Russe shopper as well as all young women across the country, these deals are not to be missed.”
Schaffer also warned that the remaining discounted merchandise will sell fast.
“On-trend fashion offered at liquidation discounts off already affordable prices will sell incredibly fast,” Schaffer said.
Charlotte Russe is closing and liquidation sales begin today. https://t.co/ndPrQT5BzX pic.twitter.com/xj9RETnT2U
— WWD (@wwd) March 7, 2019
Founded in San Diego in 1975, Charlotte Russe was purchased by private equity firm Advent International for $380 million in 2009. Charlotte Russe reached its peak in sales in 2016 at $986 million, according to the news release.
However, in recent years the company has been struggling, and in February Charlotte Russe filed for Chapter 11 bankruptcy protection. At the time, the company said it would close 94 stores.
The chain also put itself up for sale and said if it didn’t find a buyer it would liquidate. In the filing, the company said it had received a bankruptcy financing package at the maximum amount of $50 million to help it continue operating. The company also oversees Peek Kids clothing stores.
The company once had over 500 stores in 49 states and Puerto Rico, according to the news release.
CHARLOTTE RUSSE CLOSING ALL STORES: Charlotte Russe has filed for bankruptcy and will close all stores with going out of business sales starting today https://t.co/pqGZLtlhLY
— ABC7 Eyewitness News (@ABC7) March 7, 2019
However, in Wednesday’s filing, it said it would close all 416 Charlotte Russe stores as well as the 10 Peek Kids stores it operates.
The company has more than 8,700 employees. Aside from 1,400, the rest are all part-time workers. While the bankruptcy court also approved a total of $559,000 in bonuses for key company executives to keep them in place during the shutdown process, most of the company’s employees won’t be as lucky, because severance payments are rarely paid in US bankruptcy cases, according to CNN Business.
Charlotte Russe closing all stores; liquidation sales start Thursday https://t.co/rguiRjMB5O pic.twitter.com/27oBP94WF5
— WTVR CBS 6 Richmond (@CBS6) March 7, 2019
