Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Coldwater Creek, Inc. may file for bankruptcy
Author: Joel R. Glucksman
Date: April 15, 2014
Key Contacts
Back
The women’s clothing retailer Coldwater Creek, Inc. may seek protection under bankruptcy law as early as this week, sources told Bloomberg Businessweek. The company hasn’t been profitable since 2007, and may seek to liquidate its assets in order to repay its creditors. Five months ago, the retailer said that it was exploring “strategic alternatives,” including selling itself, to settle its debt.
Coldwater Creek was started in 1984 by Dennis Pence, a former Sony Corp. executive. The company began as a catalog business, selling women’s accessories and gifts, and initially enjoyed rapid growth.
After news of the planned bankruptcy filing was reported, shares in the retailer dropped precipitously, falling 75 percent to 17 cents per share as of 2:27 p.m. in New York, according to Bloomberg.
The Wall Street Journal reported that the retailer has been struggling for months with attempts to refinance its debt or find a private-equity buyer – attempts that were ultimately unsuccessful. Coldwater Creek has approximately $353 million in total debt, $180 of which is in current liabilities, according to its most recent earnings filing.
The company posted sales of about $155 million for the quarter ending Nov. 2, 2013, according to the news source. This is down from $188 million year-over-year. In 2012, private-equity firm Golden Gate Capital gave the company a $65 million term loan, and has the option to buy stock in the retailer.
The Journal compared the retailer’s troubles to the recent troubles of Brookstone Inc., another major mall retailer that is expected to file for protection under Chapter 11 of the bankruptcy law within the next few days. Other recent retailer filings included Ashley Stewart Holdings Inc., Dots LLC and Loehmann’s Holdings Inc. Disappointing retail sales this holiday season affected many mall retailers’ bottom lines.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.