Another national retailer’s bankruptcy is having a ripple effect on Richmond storefronts, this time with three area malls losing a tenant.
Charlotte Russe, a women’s clothing chain, is going out of business and closing all of its remaining 416 stores nationwide, including its locations in Virginia Center Commons, Chesterfield Towne Center and Regency Square. Prior to filing for bankruptcy, the company operated more than 500 stores in 49 states and Puerto Rico, under the Charlotte Russe and Peek Kids brands.
Liquidation sales are underway at each local Charlotte Russe location, and all of its stores are scheduled to be closed by April 30, per a USA Today report. Its online store is already shut down.
The chain was founded in 1975, selling women’s clothing, shoes and accessories. Private equity firm Advent International Corp. purchased the brand for $380 million in 2009.
Last month, the chain was put into Chapter 11 bankruptcy. Last week, a judge in Delaware approved a sale of its assets to liquidator SB360 Capital Partners.
Charlotte Russe’s leases and intellectual property are being sold separately, SB360 said.
In a statement, SB360 said that Charlotte Russe’s annual sales peaked at $986 million in 2016. CNN reported that the company’s sales dropped from $928 million in 2017 to $795 million last year, a decrease of more than 14 percent. Its current inventory is valued at $160 million.
Charlotte Russe is the latest in a line of bankrupt national retailers to shutter their local stores.
Last month, Performance Bicycle closed its lone Richmond shop in the West End, and in January, children’s retailer Gymboree announced plans to close four local stores as part of a bankruptcy that was filed in Richmond federal court.