Coldwater Creek Inc., a woman’s apparel and accessory retailer, will be shuttering its stores, including the one in Tyler, after filing for bankruptcy.
Idaho-based Coldwater Creek Inc. announced the company and all of its U.S. subsidiaries filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del., to facilitate an orderly wind-down of its operations, according to a prepared statement at www.cold watercreek.com.
Coldwater Creek’s stores are open for business and serving customers. The company expects to commence sales to liquidate its inventory in early May.
Employees of the Tyler store, at 4243 S. Broadway Ave., have not been told when they will close, an employee answering the phone there said.
With its financial and legal advisors, Coldwater Creek during the past six months engaged in a thorough analysis of all potential alternatives, including a sale of the company. They were unable to find a potential buyer or a source of capital to provide adequate liquidity to fund the company’s ongoing strategic turnaround initiatives.
As a result, the Coldwater Creek’s board of directors determined an orderly liquidation of the business would be the best way to maximize value for the benefit of the company’s creditors. It intends to hold going-out-of-business sales in the coming months, representatives said.
“First and foremost, we are extremely grateful to all of our associates for 30 years of dedicated service to Coldwater Creek and to the millions of loyal customers who have enjoyed our award-winning customer service and beautiful and unique products. Our talented associates continue to impress, performing their duties with professionalism and grace during this period of uncertainty,” Jill Dean, president and CEO of Coldwater Creek, said in a statement. “This difficult decision follows a comprehensive strategic and financial review of the business. The board of directors has determined that the actions we are taking represent the best path forward for Coldwater Creek and its stakeholders.”
In conjunction with its Chapter 11 filing, Coldwater Creek has received a commitment for $75 million in “debtor-in-possession” financing from its existing lender, Wells Fargo. Subject to court approval, this financing will be available to support the company’s operations during the wind-down process.
For more, visit www.coldwater creek.com.