As expected, 2021 is turning out to be no different from 2020 – whichever part of the globe one is residing.
Earlier this week, if it was the British retailer Edinburgh Woollen Mill that was sold after collapsing into administration late last year, it is now the turn of American fashion stalwart Christopher & Banks to file for bankruptcy.
The women’s clothing brand filed for Chapter 11 bankruptcy yesterday (14 January 2021).
Not surprising, especially after it received notices of default on a term loan and on secured vendor programme earlier this month.
Reportedly, Christopher & Banks has appointed Hilco Merchant Resources to run liquidation sales at all its 449 stores.
The retailer, however, also made it clear in a statement released to media that it is considering to shut some – if not all – of its stores. That would be complete exit from physical stores!
Again that’s not come as a surprise! Bricks-and-mortar accounts for 75 per cent of Christopher & Banks’ sales and pandemic-induced store closures and lockdowns have thus killed all its clothing business.
In fact, the retailer, reportedly, said in the court that its bankruptcy filing was largely due to the COVID-19 impact.
While the retailer has plans to move away from bricks-and-mortar stores, it also has plans to sell its online platform in Chapter 11. The focus seems to be on becoming an ‘e-commerce only’ brand. We will let you know here about all latest developments!
Started in 1956 as Braun’s Fashions, it became a publicly traded company in 1992 and was re-branded Christopher & Banks.