The fashion and accessory retailer has applied for its second Chapter 11 bankruptcy in a move that will affect over 3,000 employees.
The reports are out. The accessory and jewelry giant will be permanently closing its doors. Charming Charlie filed Thursday (July 11th 2019) for bankruptcy in Delaware.(1) Liquidation is suspected to take until the end of August, and the retailer cites the failing retail market as a large contributor to the closure. (2)
“The Debtors once again face issues similar to those that precipitated filing the Prior Cases: unsustainable operating expenses, including onerous leases, and constrained liquidity under our loan documents,” Charming Charlie said in its bankruptcy filing. “This lack of liquidity has resulted in reduced inventory, further exacerbating the Debtors’ lack of availability under their asset based loan. These factors combined with the continued decline of the brick-and-mortar retail industry have made it increasingly difficult for the Debtors to support their cost and capital structure.”The Chron
This is the retailer’s second bankruptcy in two years. Their first was filed in 2017.(3) The closure is among a chain of long-standing retailers permanently shutting their doors as consumer preferences demand more e-commerce.
So this begs the question . . .
How do YOU prefer to shop?
With more and more options becoming available online, has this changed the way you prefer to shop? One of the year’s most competitive online shopping events next to Black Friday, Amazon Prime Day, and is quickly approaching. (Psst! You can get $30 to spend and free access to the deals!)
Does what you are shopping for change your preferred method of shopping? I rather enjoy getting to put my hands on things, feel the material of the clothes I buy, and I definitely like trying on shoes. But oftentimes a brand becomes a favorite, and I no longer need to try it on. Myself, I prefer a mix of online and brick and mortar browsing.
However you like to shop, one thing is certain: the market of retail is constantly changing!