Women’s apparel chain, The Limited is reportedly going to be the first apparel retailer to file for Bankruptcy in 2017. The 240-store chain, which like other women’s apparel stores, has been struggling with declining traffic and a surfeit of merchandise in the market. The company is planning to file for Chapter 11 bankruptcy protection in the coming weeks, probably with liquidation.
Last month, the company reportedly said that it was “exploring a number of options that would provide the company with greater financial flexibility”. Just like Chico’s, Ann Taylor and other women’s apparel stores, The Limited has been struggling with shifts in consumer behaviour and interest, a greater number of rivals as well as longer store leases.
The retailer, founded in 1963 in Columbus, Ohio, was spun off from Victoria’s Secret parent L Brands in the year 2007 in a leveraged buyout by private-equity firm Sun Capital Partners. In 2010, L Brands, known as Limited Brands until 2013, sold its remaining 25 per cent stake to Sun Capital for roughly US $ 32 million.
Also Read – Womenswear retailer The Limited’s interim CEO takes exit
It has been a difficult year for many mall-based retailers: Aéropostale, Pacific Sun, American Apparel and The Sports Authority are among those to have filed for Chapter 11 Bankruptcy protection to either slim down or in the case of Sports Authority, shut down altogether.
