After announcing its Back to Basics plan to simplify operations (including a more recently announced plan to close 100 stores), retail chain Charming Charlie LLC announced it has filed for Chapter 11 bankruptcy protection, entering into a restructuring agreement with lenders and equity sponsors.
The accessories retailer has secured $20 million in debtor-in-possession financing from a majority of its existing term loan lenders and entered into a $35 million asset backed loan with current lenders.
“During this holiday season, CharmingCharlie.com and hundreds of our stores across the country are open for business and serving customers,” said Lana Krauter, Interim Chief Executive Officer of Charming Charlie, in a statement. “The actions we are announcing today are intended to help ensure that the Company has adequate sources of financing and the right capital structure to support the business on an ongoing basis as we continue to implement our Back-to-Basics Strategy. We are confident that by reducing the size and scale of our business, we can focus on the core strengths that make the Company successful.”
Charming Charlie joins the list of retailers who have filed for bankruptcy in 2017, including The Limited, Wet Seal, Toys R Us, and BCBG Max Azria, to name a few.