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Charlotte Russe Declares Bankruptcy, Plans to Close Nearly 100 Stores
Charlotte Russe Holdings Corporation, together with its subsidiaries, voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The San Francisco-headquartered retailer intends to use these proceedings to facilitate an orderly wind-down of a group of roughly 94 of its store locations, while continuing to pursue a going-concern sale of the business and assets.
Charlotte Russe and Peek stores and online platforms remain open and continue to serve customers. The company, which has more than 500 stores in 48 states, says it will provide more details about the plans for the closing locations of Charlotte Russe and Peek and their store closing sales soon.
The retailer has received a commitment for a debtor in possession financing in the maximum amount of $50 million. If approved by the Bankruptcy Court, the financing will support the company’s operations and administration during the Chapter 11 proceedings.
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