Soft Surroundings, a US-based women’s apparel brand, has filed for Chapter 11 bankruptcy. The company also sells home décor products.

There are plans to sell the company’s D2C assets to another retailer and several brick-and-mortar stores will also be closed and it will completely restructure its brand.

The company said that it filed bankruptcy to create a ‘restructuring support agreement’ under which it will sell its assets to Coldwater Creek, a catalog and online retailer. Through this agreement, Coldwater Creek will continue Soft Surroundings’ ‘ongoing direct-to-consumer and e-commerce operations,’ read the release.

Just 3 months back, the company had filed a Worker Adjustment and Retraining Notification Act (WARN) notice, stating that it would lay off 79 workers at the company’s distribution center in Mexico, Missouri. More layoffs soon followed with Soft Surroundings calling the move.

According to the bankruptcy filing, Soft Surrounding Holdings listed its estimated assets up to US $ 50,000 and estimated liabilities between US $ 50 million and US $ 100 million.

The retailer has one store in South Carolina and three in North Carolina, including a Charlotte store which opened in 2016.