Connect with us

Headlines

Fashion Jewelry Chain Charming Charlie Files for Ch. 11 Bankruptcy

mm

Published

on

It’s expected to close 100 stores.

Charming Charlie, a fashion jewelry and accessories chain based in Houston, has filed for Chapter 11 bankruptcy protection and announced a financial and operational restructuring plan.

The company “expects to operate the majority of its stores and its website as usual during the court-supervised process, according to a press release. But subject to court approval, it also “intends to move forward with its previously announced plans to close underperforming locations and simplify its business operations.”

Charming Charlie anticipates closing about 100 of its 375 stores, the Wall Street Journal reports, citing an unnamed source.

“The actions we are announcing today are intended to help ensure that the Company has adequate sources of financing and the right capital structure to support the business on an ongoing basis as we continue to implement our Back-to-Basics Strategy,” Lana Krauter, interim CEO of Charming Charlie, said in a press release. “We are confident that by reducing the size and scale of our business, we can focus on the core strengths that make the Company successful.”

The company said it has secured $20 million in debtor-in-possession financing from its term lenders. It also said it’s entered into a $35 million asset-backed loan with its current lenders.

Both financing arrangements are subect to court approval. Charming Charlie said they’re “intended to ensure Charming Charlie is able to continue meeting its financial obligations throughout the Chapter 11 case,” which was filed in U.S. Bankruptcy Court in Delaware.

Advertisement

In court documents, Charming Charlie listed its assets at between $50 million and $100 million. It listed its liabilities at between $100 million and $500 million.

Read more at the Wall Street Journal

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

When Liquidation Is the Best Option, This Legendary Jeweler Chose Wilkerson

George Koueiter & Sons Jewelers, a 65-year old jewelry institution in Grosse Pointe, MI, had always been a mainstay in this suburban Detroit community. But when owners George and Paul Koueiter were ready to retire, they made the decision to close rather than sell. “We decided our best option to do the liquidation sale was Wilkerson,” says Paul Koueiter. The results, says George Koueiter, exceeded expectations and the process was easy. “Wilkerson just kept us in mind,” says George. “They never did anything without asking and whatever they asked us to do was just spot on.”

Promoted Headlines

Most Popular