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The women’s ready-to-wear company filed for Chapter 11 on Thursday, due to “financial distress resulting from the pandemic and its continuing impact,” he said. Christopher & Banks, which has about 400 locations in 44 states, said it would close “a significant portion” of the stores and is in “active discussions” to sell its website.
Bankruptcy was announced last year when the company announced it had hired an investment banker to refinance its debt and “explore other strategic alternatives.” In May, the company took out a loan of between $ 5 million and $ 10 million from the Paycheck Protection Program, according to the CNN Business database.
Christopher & Banks admitted in their latest results release that Covid-19 has particularly disrupted the shopping habits of women who shop at stores offering more formal clothing. They have become more pragmatic shoppers, the company said, opting for casual wear instead of outfits for social engagements.
It is certainly not the only one. Other retailers cited similar reasons in their bankruptcy filings last year. Ascena Retail Group, owner of Ann Taylor, Loft and Lane Bryant, said its business was “severely disrupted” by the pandemic and closed hundreds of stores. RTW Retailwinds, owner of New York & Co., has also closed most of its stores.
With the shift to working from home, the purchase of work clothes has fallen into disuse, jeopardizing the future of businesses that depend on office attire. New data from Coresight Research reveals that more than 8,700 stores closed in 2020 and 1,400 more closed this year.
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