Yesterday Charlotte Russe (San Diego) sought court approval to file for Chapter 11 bankruptcy as it sells off its assets at auction. The company is seeking to begin a store-closing plan that would shutter 94 of its 512 stores.
In the filing, the company listed its assets as somewhere between $500 million and $1 billion, with its liabilities ranging from $100 million to $500 million. The filing comes two years after the retailer struck a deal with its lenders to cut its debt from $214 million to $90 million, according to Women’s Wear Daily.
The retailer has been underperforming since striking that deal, and its credit has since been downgraded by Moody’s and was put on the organization’s watch list for retailers at risk of defaulting on loan payments.