Charlotte Russe to close Milford store amid bankruptcy filing
Charlotte Russe is the latest brand to announce a series of closures as the chain stores continue to feel the strain in the changing industry. .
The women’s clothing company, which has traditionally been a fixture in shopping malls, filed for Chapter 11 Bankruptcy Sunday and announced it plans to close nearly 94 stores nationwide. Three Connecticut locations are on the chopping block.
Stores in Milford’s Connecticut Post Mall and the Westfield Meriden will be closing along with one location in Ledyard.
The retailer also plans to put itself up for sale, according to national reports, which suggest that the company has been dealing with declining sales numbers.
The San Diego-based company reportedly secured $50 million from lenders to continue running about 400 Charlotte Russe and Peek Children’s stores during the bankruptcy.
The chain plans to liquidate if it can’t find a buyer by Feb. 17, according to a court filing.
Charlotte Russe employs more than 8,700 people and has more than 500 stores in 49 states and Puerto Rico.
Charlotte Russe is the latest in a line of mall retailers that have filed for bankruptcy in part because of lagging revenue and shifting consumer trends toward e-commerce. That list includes Gymboree Group, which filed in January for its second bankruptcy in less than two years.
Gymboree, the parent company of the children’s clothing retailer and Crazy 8, will be shutting down almost 900 locations.