Chapter 11 Next Step for Charming Charlie

Days after announcing it would close stores and cut jobs, fashion jewelry chain Charming Charlie LLC filed for Chapter 11 bankruptcy. The accessory retailer, headquartered in Houston, entered into a restructuring agreement with both lenders and equity sponsors.

The retailer indicated that it entered into a $35 million asset-backed loan with current lenders, while securing $20 million in debtor-in-possession financing from a majority of its existing term-loan lenders. Meanwhile, the majority of the company’s stores and its website would operate as usual. Kirkland & Ellis LLP is serving as legal counsel, AlixPartners LLP as restructuring advisor and Guggenheim Securities LLC as investment banker to Charming Charlie.

More than 15 retailers filed for bankruptcy in 2017.

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