Christopher & Banks files for bankruptcy
Following a period of consideration after seeing sales plummet during the Covid-19 pandemic, specialty women’s apparel retailer Christopher & Banks Corporation has filed for Chapter 11 bankruptcy, the company announced on January 14.
As a result of the filing, the company said in a press release that it expects to close "a significant portion, if not all" of its brick-and-mortar stores. In addition, the company has launched a store closing and liquidation process.
The company said it is in active discussion with potential buyers for the sale of its e-commerce business and related assets.
The company filed in the United States Bankruptcy Court for the District of New Jersey.
The company filed customary motions with the court that will authorize, upon Bankruptcy Court approval, the company’s ability to maintain operations in the ordinary course of business, including the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business, and the use of cash collateral, the company said.
“Since the start of the Covid pandemic, we have taken aggressive steps to protect our business while continuing to serve our customers in a healthy and safe environment," said Keri Jones, president and chief executive officer.
"Despite the tremendous advancements we have made in executing our strategic plan, due to the financial distress resulting from the pandemic and its ongoing impact, we elected to initiate this process and pursue a potential sale of the business in whole or in part to position the Company for the future. I want to extend my deepest gratitude to our dedicated associates, loyal customers and supportive partners for their commitment to Christopher & Banks throughout these challenging times.”
In September of 2020, the Plymouth, Minnesota-based retailer saw revenues fall by 30% in the second quarter ended August 1, 2020. In the third quarter ended October 31, 2020, numbers continued to slip, with net sales decreasing 22.6 % to $72.8 million, down from $94.1 million in the same period in the previous year.
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