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Home / Business / Charlotte Russe files for bankruptcy; pursue sale | Chain Store Age

Charlotte Russe files for bankruptcy; pursue sale | Chain Store Age



FINANCE

Mounting debt and slow shopping center have taken duty on another specialist dealer.

Charlotte Russe Holdings Corp. announced that it has filed for Chapter 11 bankruptcy protection. The young women's fashion retailer said it plans to close about 95 stores, while continuing to pursue a sale of the business and assets. Charlotte Russe operates more than 500 stores, including 10 under their Peek Kids banners.

In 2009, Charlotte Russe was bought by private equity firm Advent International for $ 380 million. In February 201

8, the company announced a restructuring agreement with its lenders that allowed it to cut its debt from $ 214 million to $ 90 million. But sales have taken place in a harsh climate for mall-based youth stores.

All the company's stores and online platforms are currently open and serving customers as usual. Charlotte Russe has received a commitment to fund up to $ 50 million in debt financing that will help the company support its business and administration during Chapter 11 proceedings

Cooley LLP acts as the company's legal advisor, Berkeley Research Group serves as financial advisor, and Guggenheim Securities, LLC serve as investment banks.


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