Women's clothing retailer Coldwater Creek has filed for bankruptcy.
The business, originally known as a catalog business 30 years ago, recently
filed Chapter 11 bankruptcy protection in Delaware. Coldwater had over
300 store locations in operation but cited declining sales and the downturn
of the economy. At one point, the company had revenue peaking at just
over $1 billion in 2006.
Documents related to the filing claimed Coldwater had liabilities over
$360 million with assets close to $280 million. In 2007 the company had
over 330 locations open, but recent reports showed sales plunged 17 percent
last year. The company is following similar actions taken by other popular
retailers and food chains in recent months. Bankruptcy protection has
also been filed by Ashley Stewart, Dots, Quiznos, and Sbarro.
While company shares have been on the decline, the company has reviewed
alternative options which include seeking a buyer. They reached out to
more than 70 potential buyers and refinancers. Another option includes
a joint venture in which the company will seek for approval. Coldwater
claims to have an agreement with their lender through an in debtor-in-possession
financing commitment with Wells Fargo. The filing will help the company
liquidate assets to pay creditors.
The company had a total of 379 locations as of last November. This also
includes day spas and factory outlets. During the first quarter of the
fiscal year the company reported almost $6 million in losses with a total
loss of $80 million last year.