Published April 11, 2014
Women's clothing retailer Coldwater Creek Inc on Friday filed for Chapter 11 bankruptcy, the latest in a growing list of retailers to seek protection from creditors as consumers keep a lid on spending.
The retailer listed assets of $10 million-$50 million and liabilities of $100 million-$500 million, according to its bankruptcy filing.
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.
"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 in a statement.
Coldwater Creek last October announced plans to seek strategic alternatives, including a possible sale.
Several U.S. retailers have sought bankruptcy protection since late last year as consumers curb spending and visit malls less often.
Among those to file for Chapter 11 are pizza chain Sbarro LLC and clothing retailers Dots LLC and Loehmann's Inc.
Coldwater Creek said it expects to start inventory clearance sales in early May and has reached an agreement with inventory liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources to manage these clearances.
Sales at stores open at least a year, a key gauge of retail performance, plunged 16.8 percent in the third quarter ended Nov. 2.
The case is In re: Coldwater Creek Inc, U.S. Bankruptcy Court, District of Delaware Case No. 14-10867.