More and more businesses are taking a hit as consumers put a cap on their spending. Women’s clothing chain Coldwater Creek, is the next on that list. Despite having 365 stores nationwide, there are not enough people shopping there to save it. On Friday they filed for Chapter 11 bankruptcy.
They had hoped to be able to sell the franchise but failed to find an interested buyer. Going out of business sales will start sometime in May before Mother’s Day.
“While we are extremely disappointed with this outcome, the company’s declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action,” Chief Executive Jill Dean said.
The company has assets of $278.5 million and liabilities of $361.3 million according to the petition they filed with the US Bankruptcy Court.
Some other clothing retailers that have filed for bankruptcy in the past year are Ashley Stewart Holdings Inc, Dots LLC and Loehmann’s Inc. Dots and Loehmann’s have also decided to close stores.