Retail

Charlotte Russe files for bankruptcy and plans to shut nearly 100 stores

Key Points
  • Charlotte Russe files for Chapter 11 bankruptcy protection.
  • The apparel retailer says it's planning to shut about 94 stores.
Charlotte Russe fashions
Source: Charlotte Russe

Another private equity-backed retailer has filed for bankruptcy.

Women's apparel company Charlotte Russe on Sunday filed for Chapter 11 bankruptcy protection and said it planned to shut about 94 stores.

Charlotte Russe said in a press release Monday morning that it was continuing to pursue a sale of its business after having received a commitment of $50 million in debtor-in-possession financing. During court proceedings, it said it will continue to operate its website and keep open other Charlotte Russe and Peek Kids locations. It has more than 500 shops operating across the U.S.

The company added it will provide additional information about closing sales and the addresses of the stores set to shut "in the near term."

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In 2009, private equity firm Advent International bought Charlotte Russe in a $380 million deal. The mall-based apparel brand has since struggled as it tried to downsize its debt load. Early last year, it managed to strike a deal where it reduced its debt by $124 million.

The CEO of Simon Property Group, the biggest mall owner in the U.S., just last week said he expected more private equity-backed retailers to file for bankruptcy this year, though he didn't name any particular companies.

Also on Sunday, FullBeauty, a plus-sized apparel retailer based in New York, filed for bankruptcy protection, adding to a growing roster of retailers to go that route this year. Gymboree and Shopko also filed last month.