Delia’s, Deb Shops Face Bankruptcy

Deb Shops (Philadelphia) filed for bankruptcy last Thursday, while Delia’s (New York) announced Friday that it would file for Chapter 11 protection and begin holding going-out-of business sales at all of its stores.

Delia's announced last June that it was attempting to find a buyer or obtain financing that would allow it to continue to operate its 95 stores. It was unable to do so. Deb Shops filed for Chapter 11 after its lenders declined to make additional investments in the company, according to Women’s Wear Daily. The company operates 295 stores.