Charming Charlie emerges from bankruptcy with a smaller footprint, new owners
Charming Charlie is no longer bankrupt. But it has fewer stores.
The jewelry and accessories retailer said it successfully completed its financial restructuring and emerged from Chapter 11, with its court-confirmed reorganization plan taking effect today, April 24, 2018. Charming Charlie filed for bankruptcy protection in December, after announcing plans to shutter a number of underperforming stores and reduce corporate headcount. It has since closed roughly 100 locations.
Similar to many other retailers, Charming Charlie has suffered from sluggish mall traffic and rising digital sales. It also has been hurt by merchandising miscalculations and an overly broad vendor base, according to a statement by its CFO at the time of the Chapter 11 filing.
"Today marks a fresh start for Charming Charlie as we emerge as a stronger, more focused organization that is better positioned to serve customers in our 264 stores across the country," said Lana Krauter, CEO, Charming Charlie. Krauter joined the company in the fall.
Under Charming Charlie’s reorganization plan, lenders took over most ownership in the company, with the majority equity holder being THL Credit.
“We are pleased the creditors were able to come to an agreement that positions Charming Charlie with a new management team, a stronger balance sheet and an improved retail footprint,” said Christopher Flynn, CEO of THL Credit. “We are confident in the company's underlying fundamentals, and believe Lana's deep experience will provide strong leadership as Charming Charlie pursues the growth opportunities we see for the business going forward.”