Coldwater Creek, a prominent figure in the Women’s clothing industry, has filed Chapter 11 bankruptcy. The chain is closing all of its stores in a desperate effort to consolidate itself and find a person willing to buy it.
With a total of 365 stores and 6,000 employees, a large hit is set to unfold to many employees if something doesn’t happen soon.
The company is operating at a loss, with a total of $278.5 million in assets, but around $361.3 million is liabilities to creditors. Coldwater Creek is not the only company seeking protection from bankruptcy however, as consumers curb their spending habits, Sbarro LLC is another entity to file a bankruptcy petition.
The Company has not shown a profit since 2006. Looking back in time to October 2013, the company was in talks with 75 interested prospects to pick up the helm of the store, but no final offers.
Wells Fargo has given the company a $75 million debtor-in-possession financing commitment.