Jewelry and accessories retailer Charming Charlie is closing all 261 of its stores in 38 states as part of its latest Chapter 11 bankruptcy filing.
The chain expects the liquidation to take about two months. More than 3,000 full- and part-time employees could lose their jobs.
The filing marks the company’s second Chapter 11 case, qualifying as what restructuring industry professionals call a “Chapter 22” bankruptcy.
Charming Charlie closed about 100 stores during its previous bankruptcy, which ended in April 2018. The retailer used that process to cut debts and slash other costs, but “these efforts simply were not sufficient to stabilize” the business and deliver profits, the company said Thursday in a court filing.
The company said it faced “unsustainable operating expenses, including onerous leases” at a time when many brick-and-mortar stores are battling with online retailers.
Founded in 2004, Charming Charlie was known for arranging its merchandise by color, with its array including as many as 26 hues.
The Houston-based company on Thursday reported having about $6,000 in cash on hand and said its planned liquidation sales would bring in $30 million in revenue. Second Avenue Capital and White Oak Commercial Finance is providing $13 million in debtor-in-possession financing to fund the company’s operations through the latest bankruptcy.
