After sales plummeted during the pandemic, Plymouth-based Christopher & Banks has filed for bankruptcy protection and expects to close a large portion, if not all, of its stores.
The women’s apparel chain said Thursday it filed voluntary petitions for Chapter 11 in U.S. Bankruptcy Court for the District of New Jersey.
Christopher & Banks has launched a store closing and liquidation process as it is in active discussion with potential buyers, it said.
“Since the start of the COVID pandemic, we have taken aggressive steps to protect our business while continuing to serve our customers in a healthy and safe environment,” said Keri Jones, CEO of Christopher & Banks, in a statement.
The chain had been in financial trouble before the pandemic and brought in a new leadership team to jumpstart its sales. Progress had been made before the pandemic.
“Despite the tremendous advancements we have made in executing our strategic plan, due to the financial distress resulting from the pandemic and its ongoing impact, we elected to initiate this process and pursue a potential sale of the business in whole or in part to position the company for the future,” Jones said. “I want to extend my deepest gratitude to our dedicated associates, loyal customers and supportive partners for their commitment to Christopher & Banks throughout these challenging times.”
The women’s apparel store has reported for months that it was in financial trouble. Last month, Christopher & Banks reported it lost $10.8 million, or 29 cents a share, in its third quarter ended Oct. 31. Sales decreased nearly 23% to $72.8 million in the quarter compared with the same time last year.
The company began talking to external advisers, including investment-banking firm B. Riley Securities Inc., to consider different options including selling the company or seeking bankruptcy protection.