Charming Charlie announced that the company has taken the necessary steps to file for Chapter 11, leading to more than 200 stores closing.
Every one of the jewelry business’ 261 locations across 38 stores will shutter their doors following the bankruptcy filing from the company, which was made public on Thursday. This is the second such Chapter 11 situation for the brand–during the first such closing, roughly 100 stores shuttered their doors, with the most recent closings happening in April of last year.
During the previous bankruptcy process, Charming Charlie was able to lower its debt and minimize some costs, yet the move was unable to bring the business back to a stable, profitable position. In the Chapter 11 announced today, the business said it faced a large number of operating expenses that it was not capable of sustaining.
It is no surprise that a company such as this one is going under at the moment as the online retail space continues to grow with no signs of slowing down, hampering brick-and-mortar stores. The rise of e-commerce has been stressed many times in recent years, but we are still experiencing the repercussions of buying products online, with Charming Charlie’s bankruptcy serving as a prime example.
The company has already started its liquidation sales, and it hopes to have all its stores empty by Aug. 31.
Article printed from InvestorPlace Media, https://investorplace.com/2019/07/charming-charlie-stores-closing/.
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