Friday April 11, 2014 women's clothing and accessories retailer
Coldwater Creek Inc. said the company and all of its U.S. subsidiaries have
filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court
in Wilmington, Delaware.
Coldwater Creek said, it has been looking for potential alternatives over the past several months, including sale of the company. Unfortunately the clothing retailer has failed to find a potential buyer or a source of capital to provide liquidity. After the investigation for better options, the Board of Directors determined that liquidation would be the best way to maximize value for the company's creditors.
Coldwater Creek said, it has been looking for potential alternatives over the past several months, including sale of the company. Unfortunately the clothing retailer has failed to find a potential buyer or a source of capital to provide liquidity. After the investigation for better options, the Board of Directors determined that liquidation would be the best way to maximize value for the company's creditors.
Coldwater Creek intends to hold going out of business sales in the
coming months as they are historically busy shopping periods for the retailer.
Coldwater Creek's stores and website are currently open for business, and the
company expects to commence sales to liquidate its inventory in early May 2014.
Further, Coldwater Creek said it has reached an agreement with its
lenders on its bankruptcy filing to maximize creditor recoveries and reduce
administrative expenses. The company has also agreed to let inventory
liquidators Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources,
LLC to manage the company's inventory clearance sales.
Coldwater Creek Inc, U.S.
Bankruptcy Court, District of Delaware Case No. 14-10867. (Reporting by Supriya
Kurane in Bangalore; Editing by Joyjeet Das)
The Sandpoint, Idaho-based
company said it has received a commitment for $75 million in
debtor-in-possession financing from its existing lender Wells Fargo.It is said that the fashion industry has lost yet another retailer.
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