Delia's files for Chapter 11 bankruptcy protection as teen retailers continue to suffer

Markets Associated Press

The teen retailer Delia's is seeking Chapter 11 bankruptcy protection and plans to sell all its merchandise and shut down.

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The company said Monday that it failed to find a buyer for the business. Delia's signed a deal with Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners to liquidate its merchandise and dispose of its furnishings and equipment.

Retailers, especially those that cater to teens, have been hit hard in the wake of the recession and almost all of them have posted lackluster sales.

Delia's said in its bankruptcy filing that it has $74 million in assets and $32.2 million in debt.

CEO Tracy Gardner and Chief Operating Officer Brian Lex Austin-Gemas resigned Friday.

Delia's Inc., based in New York, has 92 stores in malls around the country.