A clothing store beloved by teens and young adults is the latest mall store to be facing shutdowns.
In a press release, Charlotte Russe announced on Monday that it voluntarily filed for relief under Chapter 11 bankruptcy and plans to close 94 out of it’s 500 store locations, which also includes stores from their kids’ line, Peek, Kids.
The company is seeking a sale of the business, but for now, the website and brick and mortar locations will remain open thanks to the $50 million the company received from lenders. News of the upcoming closures will be announced: “in the near term.”
According to CNN, Charlotte Russe’s court filing reported that it “suffered from a dramatic decrease in sales and in-store traffic” and struggled with “the burden of maintaining a large brick-and-mortar presence.”
It also acknowledged that marketing strategies “failed to connect” with their customer. And that it “shifted too far towards fashion basics” which made them “outpace the rapidly evolving fashion trends.”