According to the Baltimore Sun, women’s clothing store Coldwater Creek Inc. filed for Chapter 11 bankruptcy this month, saying it has plans to close stores and find a buyer over the summer.
The company now joins a list of other mall and plaza retailers that have filed for bankruptcy protection since the beginning of 2014. Coldwater Creek said that it plans to wind down operations over the upcoming months and start to advertise going-out-of-business sales in early May, before Mother’s Day weekend.
Coldwater Creek has 365 stores nationwide and employs about 6,000 people. The Sun reported that there are five locations in Maryland, including at Annapolis Towne Centre at Parole, Hunt Valley Towne Center, The Mall in Columbia, and malls in Frederick and Hagerstown.
“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,” Chief Executive Jill Dean said in a statement, according to the Sun.
The Idaho-based company has assets of $278.5 million and liabilities of $361.3 million, according to court records filed with the U.S. Bankruptcy Court in Wilmington, Delaware.
Over the last couple of months, several retailers, including Ashley Stewart Holdings Inc, Dots LLC and Loehmann’s Inc., have filed for bankruptcy. Coldwater Creek was originally a catalog-based retailer, founded in 1984. In the third quarter of 2013, the company reportedly suffered a 16.8 percent decrease in sales at its stores.
Where Can I Find a Maryland Personal Bankruptcy Attorney?
It is sad to see so many retailers filing for bankruptcy in the news recently. Unfortunately, due to current economic conditions, people are not spending money like they used to at these sites. Fortunately, like retailers who are filing for bankruptcy, individuals have options too in Chapter 13 and Chapter 7 filings, which stop collections, foreclosures and can restructure debt.
For individuals struggling financially, a Chapter 7 bankruptcy would allow him or her to discharge unsecured debt, like credit card debt or medical bills. While some people do not qualify for this type of bankruptcy, there is another option in Chapter 13 bankruptcy, which allows people who have a standard income to enter into a repayment plan to pay for debts, which puts a stop to the threat of repossessions.
It should be noted that both personal and bankruptcy filings also offer an automatic stay, which is an injunction that immediately halts the actions of creditors.
You can also visit our Facebook page, our LinkedIn page, our Google+ page and our Twitter page for more information about our personal bankruptcy services. We are located near the Navy Memorial/Metro Station.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: The injunction triggered by an automatic stay during bankruptcy stops collection calls.