Clothing store chain Charlotte Russe has filed for Chapter 11 bankruptcy protection and also announced that it will close 94 of its more than 500 locations, including nearly a dozen in California.
The brand is also planning to put itself up for sale as it struggled to keep up with fast fashion retailers like H&M and Zara. No timeline was provided for the store closures.
It has US $ 50 million in bankruptcy financing to continue operating but will liquidate if it can’t find a buyer by Feb. 17, according to court papers. The chain has been teethering on the edge of bankruptcy for some time now.
Charlotte Russe, which also controls Peek stores, emphasizes women’s fashion and has more than 500 stores in 49 states and Puerto Rico. In its filing, the company said it had received a bankruptcy financing package worth up to US $ 50 million to help it continue operating.
