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Coldwater Creek Files Chapter 11 Bankruptcy

Posted By Allmand Law Firm, PLLC || 15-Apr-2014


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.


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