Charming Charlie Plans to Close 260 Stores After Filing for Bankruptcy Again

Cornelia Mascio
Luglio 14, 2019

Another retailer is going bust: Charming Charlie Holdings plans to close its remaining 261 stores after filing for bankruptcy protection for the second time in as many years.

An assistant manager at the company's Columbiana Mall store would begin liquidating its stock on Saturday and be shuddered by the end of August, but the corporate office has not yet set a date by which the store must close.

Charming Charlie has locations in 38 states, with approximately 75 stores in Texas, Florida and California alone.

Founded in 2004, Charming Charlie was known for arranging its merchandise by color, with its array including as many as 26 hues. The company employs more than 3,300 people, including 856 full-time employees, Chief Financial Officer Alvaro E. Bellon said in a court declaration. Sales on its website have already stopped. In April 2018, the company closed about 100 of its stores after its first Chapter 11 filing. That effort at restructuring its operations and debt "were simply not sufficient to stabilize the debtors' businesses and ensure long-term profitability", according to its latest bankruptcy filing.

According to Bloomberg, at the time Charming Charlie filed for bankruptcy, it only had $6,000 of cash on hand and it will be left with about $82 million in debt.

This year, U.S. retailers have already announced 6,000 store closures.

Other retailers have suffered similar fates in the current retail climate. The women's clothing chain Dressbarn announced in May it was closing all 650 of its stores.

Michael McGough anchors The Sacramento Bee's breaking news reporting team, covering public safety and other local stories.

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