(Adds plans to close, employees, financial data, bylines)
By Supriya Kurane and Jonathan Stempel
April 11 Women's clothing retailer Coldwater
Creek Inc on Friday filed for Chapter 11 bankruptcy and
plans to go out of business after failing to find a buyer.
Coldwater Creek joins other retailers to seek protection
from creditors in recent months as consumers keep a lid on
The company said it plans to wind down its operations over
the coming months and begin going-out-of-business sales in early
May, before the traditionally busy Mother's Day weekend.
Coldwater Creek said it has 365 stores and employs about
"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.
The Sandpoint, Idaho-based company has assets of $278.5
million and liabilities of $361.3 million, according to its
Chapter 11 petition filed with the U.S. Bankruptcy Court in
Several U.S. retailers have filed for bankruptcy protection
since late last year as consumers curb spending and visit malls
Among those to file are pizza chain Sbarro LLC, and women's
clothing retailers Ashley Stewart Holdings Inc, Dots LLC and
Loehmann's Inc. Dots and Loehmann's which have also decided to
Coldwater Creek was founded in 1984 as a catalog-based
marketer. Sales at stores open at least a year, a key gauge of
retail performance, plunged 16.8 percent in the third quarter
ended Nov. 2.
The company had in October announced plans to seek strategic
alternatives, including a possible sale, and solicited more than
75 parties for proposals.
"Having been unsuccessful despite their Herculean efforts
and in the face of sustained weak business performance, the
debtors have concluded (that) a liquidation through Chapter 11
is their most appropriate remaining option," Chief Financial
Officer James Bell said in a court filing.
Coldwater Creek said it received a $75 million
debtor-in-possession financing commitment from Wells Fargo & Co,
a current lender. The liquidators Gordon Brothers Retail
Partners and Hilco Merchant Resources will manage the clearance
Coldwater Creek shares closed at 19 cents on Thursday.
Shareholders are expected to receive nothing in the bankruptcy.
The case is In re: Coldwater Creek Inc, U.S. Bankruptcy
Court, District of Delaware, No. 14-10867.
(Reporting by Supriya Kurane in Bangalore and Jonathan Stempel
in New York; Editing by Joyjeet Das and Sofina Mirza-Reid)