Headlines

Samsonite Files for Chapter 11

Luggage retail division plans to close half of its 173 stores

Published

15 years ago

September 2, 2009

VMSD Staff

Samsonite Co. Stores, the retailing business of luggage maker Samsonite Corp. (Wilmington, Del.), has filed for bankruptcy protection. Through the reorganization, the company aims to focus on its outlet stores, which have fared better during the recession than its full-price retail locations.

“The recession has caused a severe decline in consumers purchasing travel-related goods and the company has responded to this critical situation with a substantial restructuring program,” says Kyle Gendreau, the treasurer of Samsonite Co. Stores and chief financial officer of Samsonite Corp.

Samsonite Corp., which was bought by private equity firm CVC Capital Partners in 2007, has not filed for bankruptcy, although the filing by its retail operations is part of the parent company's out-of-court restructuring. The new owners expanded the number of Samsonite's full-price stores after purchasing the company. Through the filing, it can break its lease commitments and close as many as 83 stores.

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