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
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
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.