Going-out-of-business sales have begun at Coldwater Creek's 370 stores following the retailer's April 11 bankruptcy filing.
A joint agreement with liquidators Gordon Brothers Group and Hilco Merchant Resources was approved by a bankruptcy court to manage the liquidation sale process. The Sandpoint, Idaho-based company listed assets of $278.5 million and debt of $361.3 million in Chapter 11 papers filed last month when it sought bankruptcy protection with plans to liquidate the business.
Discounts of 30 percent to 50 percent off original prices will be offered on all Coldwater Creek inventory, including new items for summer. The retailer's website noted that all sales are final, and that it was accepting its Coldwater Creek gift cards.
Coldwater, which hasn't posted an annual profit since 2007, is the latest clothing retailer to fall victim to falling sales in the wake of the recession. Dots, with 400 stores, shut down after filing in January. Ashley Stewart, with 168 stores in 24 states, sought Chapter 11 protection on March 10.
Other major chains that have filed bankruptcy in recent months include Brookstone, Quiznos and Sbarro, all citing sluggish consumer spending and a drop in mall traffic as contributors to their demise.
Coldwater Creek was founded in 1984. At their peak in 2006, sales were $1.1 billion. For the fiscal year ended Feb. 1, 2013, sales of $742.5 million brought a $68.7 million operating loss and an $81.2 million net loss.
The company has not provided dates for specific store closures
-See this Sacramento Business Journal article
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