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Latest recession victim blames declining sales on fewer mall shoppers
Crabtree & Evelyn (Woodstock, Conn.), the purveyor of specialty soaps, fragrances and lotions, filed for bankruptcy protection in New York. The retailer is owned by Malaysia-based Kuala Lumpur Kepong Bhd. and operates 126 across the U.S.
The company plans to shutter some of its underperforming stores and will try to renegotiate leases for others as it reorganizes under bankruptcy protection. Crabtree & Evelyn companies outside of the U.S. are not affected by the Chapter 11 filing.
According to The New York Times, Crabtree & Evelyn’s acting president Stephen Bestwick attributes the retailer’s troubles to a reduction in consumer discretionary spending, especially in shopping malls where many of its stores are located. The company has also undergone management changes that resulted in strategy shifts, including lower sales to wholesale accounts.
The retailer says it expects to lose $13.3 million on revenue of about $100 million in the current fiscal year, compared with a loss of $8 million on revenue of $107.5 million in the year that ended Sept. 30, 2008.
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