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, Washington, D.C., 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
How Understanding Bankruptcy Trends Can Benefit Your Business
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
SEC Takes Actions Against Issuers for Failure to File Form D
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
What Are FIRPTA Withholding Requirements?
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Author: Jesse M. Dimitro
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
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.