Charlotte Russe, the bankrupt women’s clothing chain, is talking to potential buyers, but if a winning bid doesn’t emerge, it expects to start shutting down its stores and operations in early March.
As it discusses a sale that could keep it in business, the San Diego-based company said Tuesday that it is also asking for court approval of a team that could oversee its possible liquidation.
A tentative timeline has potential bids being offered by March 3, with an auction occurring two days later.
“In the event that a going-concern transaction is not selected as the highest or otherwise best bid following the conclusion of the auction,” Charlotte Russe said in a statement, “the company will facilitate an orderly wind-down of all of its store locations and operations beginning on or about March 7, 2019.”
The mall-based chain, which filed for bankruptcy protection earlier this month, said then that it would be shuttering about 94 of its more than 500 stores. Right now, no other locations are being added to that list.
If Charlotte Russe doesn’t find a buyer, it would be just the latest major retailer to shut its doors. Toys R Us and Bon Ton closed down after they were unable to execute comebacks amid a landscape roiled by the rise of Amazon, big box giants like Walmart, and fast fashion favorites like Zara and H&M.
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Charlotte Russe had announced a deal to renegotiate the terms around some of its debts over a year ago. After filing for bankruptcy, the company got a financial package valued at up to $50 million to keep it in business.
The company employs more than 8,700 workers.
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