Lids Corp. Files for Bankruptcy
BOSTON (AP) _ Hat retailer Lids Corp. announced Thursday that it would file for protection from creditors under federal bankruptcy laws.
The Westwood, Mass.-based company, which has 388 stores in 47 states, did not give details on its reason for seeking Chapter 11 protection.
``This filing will provide Lids with the opportunity to streamline its operations and cost structure so that we may return to profitability,″ said Nancy Babine Kucinski, who took over as the company’s chief executive officer following the resignation Thursday of Jack B. Chadsey.
The company employs 2,700 people nationally, and has about 25 stores in the Boston area, company spokeswoman Emmanuelle Accad said.
The company would not say whether the move would result in store closings.
According to the company’s Web site, Lids was started in 1992 by two Boston college students who sold caps from a kiosk in a local mall. The company sells more than 10 million hats annually, specializing in sports and college teams caps.
The Web site says the company was planning to add 75 stores annually and sell 75 million hats over the next five years.