Coldwater Creek to fold
Coldwater Creek files bankruptcy, to close all stores
Excerpt:
Women's clothing retailer Coldwater Creek Inc. on Friday filed for Chapter 11 bankruptcy after failing to find a buyer said it plans to close its stores by early summer.
Coldwater Creek joins other retailers to seek protection from creditors in recent months as consumers keep a lid on spending.
The company said it plans to wind down its operations over the coming months and begin going-out-of-business sales in early May, before the traditionally busy Mother's Day weekend. Coldwater Creek said it has 365 stores and employs about 6,000 people.Comment: My wife's goto store for clothing.
It's interesting that they're filing Chapter 11, but closing all stores--it's basically a chapter 7 liquidation but under chapter 11. I wonder why.
ReplyDeleteIt's also worth noting that the markups in clothing are pretty amazing--double by the time it gets to the container ship, triple it again before it gets to the store. So to screw up those kind of margins really takes some doing, and probably has a lot to do with style over substance in the whole industry.