Coldwater Creek Files Chapter 11, Plans to Start Liquidation Sales in May
Posted on April 11, 2014Coldwater Creek has filed for Chapter 11 and announced plans to start an orderly wind-down of its operations. The filing confirms rumors that the clothing retailer was planning to liquidate. Coldwater Creek says it will begin liquidation sales in early May. In other statement the company says it "intends to hold going out of business sales in the coming months." The retailer's stores and websites will remain open for now through liquidation.
Jill Dean, President and Chief Executive Officer of Coldwater Creek, says in a statement, "First and foremost, we are extremely grateful to all of our associates for thirty years of dedicated service to Coldwater Creek and to the millions of loyal customers who have enjoyed our award winning customer service and beautiful and unique products. Our talented associates continue to impress, performing their duties with professionalism and grace during this period of uncertainty. This difficult decision follows a comprehensive strategic and financial review of the business. The Board of Directors has determined that the actions we are taking represent the best path forward for Coldwater Creek and its stakeholders. While we are extremely disappointed with this outcome, the Company's declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action. As we begin preparing to wind down our operations, customers should know that our stores and website remain open for business and we will be providing information about the tremendous values that will be available at our inventory clearance sales in the coming weeks."
Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC will be managing the company's inventory clearance sales. The Wall Street Journal reports that the best period for Coldwater Creek was in 2006 when they had revenues ofr $1.1 billion.