Charlotte Russe files for bankruptcy, will close nearly 100 stores
Women's apparel company Charlotte Russe filed for Chapter 11 bankruptcy protection Sunday and said it will close approximately 94 stores in malls across the country.
The company said it will use the bankruptcy proceedings to sell its certain assets and that it's received a commitment of $50 million in financing, according to a press release Monday.
In the meantime, both its brick-and-mortar and online stores remain open for business. More details about the store closures and sales are forthcoming, according to the release.
Charlotte Russe Holdings Corp., which also operates Peek Kids stores, offers "affordable on-trend apparel, shoes and accessories for all sizes." It operates more than 500 stores across the United States.
The company was founded in 1975 in San Diego and employees roughly 8,700 employees. In 2009, private equity firm Advent International bought Charlotte Russe for $380 million.
In recent years, sales declined in tandem with in-store traffic slowdowns as a result of business strategies that failed to resonate with young female shoppers -- the company's target audience.
The fast fashion retailer's sales took a hit in 2018, falling to $795 million last year from $928 million in 2017 .
The company is scheduled to make its first appearance in bankruptcy court Tuesday.