photo credit: Kristi Blokhin // Shutterstock
Charlotte Russe has held young ladies down for the longest! The mall-based company has just filed for Chapter 11 bankruptcy, and plan to close 94 of their 500 stores around the country.
In the court documents filed today, the company said 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.” They plan to comeback with a new owner and lighter balance sheet. Moving forward with their 400 stores, the company has secured $50 million from lenders.
Charlotte Russe’s sales plunged from $928 million in 2017 to $795 million in 2018. The company said its marketing strategies “failed to connect” with teens and young adults and “outpace the rapidly evolving fashion trends.” Charlotte Russe also “shifted too far towards fashion basics” and away from trendy clothes, which the company said prevented it from growing its online business.
In the future, they will develop more online and social media content, be more engaging and go back to its “on-trend, fast-fashion model.”
We’ll see what the future holds for CR!
Written by Clarke Jones
Source: The Shaderoom