(Reuters) - Fashion jewelry chain Charming Charlie LLC said on Monday it filed for Chapter 11 bankruptcy and entered into a restructuring agreement with lenders and equity sponsors.
The retailer said it had secured $20 million in debtor-in-possession financing from a majority of its existing term loan lenders and entered into a $35 million asset backed loan with current lenders.
The majority of its stores and its website would operate as usual, Charming Charlie said, adding it would roll out a “back-to-basics” strategy, close underperforming locations and simplify business operations.
Earlier this month, Reuters reported the Houston-based retailer was preparing to file for bankruptcy in the wake of a downturn in the U.S. retail market.
More than 15 retailers, including Toys “R” Us Inc, the largest toy seller in the United States, have filed for bankruptcy this year.
Confirmation of the bankruptcy arrives in the midst of the holiday shopping season.
Kirkland & Ellis LLP is serving as legal counsel, AlixPartners LLP as restructuring advisor and Guggenheim Securities LLC as investment banker to Charming Charlie.
Reporting by Tamara Mathias in Bengaluru; Editing by Cynthia Osterman