Womenswear retailer Coldwater Creek is preparing to file for bankruptcy, reports say. The Wall Street Journal reported that the retailer has decided to call it quits after struggling with a huge debt burden and failing to revive sales.
After the news surfaced, the company’s stock slid by 76% during the early hours on Monday. The company representatives were not available for comment.
Coldwater Creek is mainly catalogue retailer, though it also operates some stores in malls. Like many others in this sector, the retailer has been struggling with mounting debts and seen sales decline fast. The Wall Street Journal reports that various attempts to refinance debts and sell out deals have fallen flat. According to the company’s filings, Coldwater Creek carries about $353 million in total debt, which includes about $180 million in current liabilities. It is not clear what it intends to do after filing for bankruptcy.
Coldwater Creek posted sales of about $155 million for the quarter ended Nov. 2, 2013, compared with $188 million in the year-earlier period. Same-store sales declined 16.8% for the same time period. The company's net loss widened to $23.8 million.
In its filing, it is said that as of November 2nd, 2013, the company operated 343 stores across USA.
Coldwater Creek is the latest addition to the long list of names like Brookston, Ashley Stewart and Dots- all of which have either declared bankruptcy or downed their shutters in the last few months. Most retailers are finding it impossible to survive in a harsh economic environment- where the growing might of the online retailers is felling brick-and-mortar stores left and right.