More than 7,000 store closures have already been announced in 2019.
Charming Charlie, a jewelery and accessories retailer, filed a bankruptcy report on Thursday in Chapter 11, with the goal of closing all of its 261 stores in 38 states.
The filing marks the second case of the company in chapter 11, describing what the professionals of the restructuring of the sector call a bankruptcy "Chapter 22".
Charming Charlie closed about 100 stores during its previous bankruptcy, which ended in April 2018. The retailer used this process to reduce its debts and reduce other costs, but "these efforts have all just not enough to stabilize its business and generate profits, "said the company Thursday in court.
The company said it was facing "unsustainable operating expenses, including expensive leases," at a time when many physical stores are battling online retailers.
According to Coresight Research, more than 7,000 store closures are already underway or completed in 2019 in the retail sector. (See the closures here.)
Charming Charlie sells handbags, clothes and other accessories. (Photo: Getty Images)
Business start sales have already started at Charming Charlie. The company plans to leave its stores before August 31, according to a court file. Hilco Merchant Resources and SB360 Capital partners are in the process of liquidation.
More store closures coming soon: It is estimated that 12,000 stores could close by the end of 2019
Similar trends have affected competitors such as the Claire's chain of stores, which had filed for chapter 11 protection in the event of bankruptcy in 2018.
Founded in 2004 by Charles Chanaratsopon, Charming Charlie sells jewelry, handbags, clothing, gifts and other items, with a focus on colorful products. By the end of 2017, the company had more than 390 locations in the United States, Canada, the Middle East and the Philippines.
Texas, Florida and California have about 75 Charming Charlie stores.
The company considered women between the ages of 35 and 55 as its "main clientele," said CFO Alvaro Bellon in a court file.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
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