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.
- 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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
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.