Charlotte Russe (clothing retailer)

Charlotte Russe is an American clothing retail chain store that operated in the United States, headquartered in San Francisco, California. Fashions in the stores are targeted at women in their teens and twenties. The company owns and operates stores in 45 states.[3] As of June 2014, Charlotte Russe operates 560 stores, mostly in malls and shopping centers.[4][1] It filed for Chapter 11 bankruptcy on February 4, 2019.[5] It was announced on March 7, 2019 that it would be closing all of its remaining stores and would be attempting to sell the brand's intellectual property.[6] In April 2019 the company under new ownership has announced on its website that it will reopen 100 retail locations. After the company announced it was closing its stores, the brand was sold to Toronto-based YM Inc., according to a press release.

For the dessert known as a Charlotte russe, see Charlotte (cake).

Charlotte Russe, Inc.
TypePrivate
IndustryRetail
FateChapter 11 bankruptcy; Liquidation (original)
Founded1975 (1975) (original)
Carlsbad, California, U.S.
April 2019 (April 2019) (revival)
FounderDaniel Lawrence
DefunctApril 30, 2019 (2019-04-30) (original)
HeadquartersSan Francisco, California, U.S.[1]
Number of locations
135 (Nov 2019)
Key people
Jenny Ming (President & CEO)
ProductsClothing, footwear, and accessories for women
OwnerYM Inc.
Number of employees
6,500[2]
Websitewww.charlotterusse.com

History
Charlotte Russe store front
Charlotte Russe shoe display
Going out of business sale in Rapid City, South Dakota

Charlotte Russe was founded in 1975 by Daniel Lawrence and his two brothers, all who worked in their family's Brooklyn, New York clothing business. Lawrence and his siblings formed Lawrence Merchandising Corp. in Carlsbad, California. With the first Charlotte Russe storefront in San Diego, California, other locations were established throughout the 1970s and early 1980s.

The company was acquired in 1996 by the investment firm of SKM (Saunders Karp & Megrue). The new owners had expansion plans for Charlotte Russe - evolving it into a national chain of shopping mall stores. SKM took Charlotte Russe public in 1999 until Advent International acquired it in 2009. As President and CEO, Jenny Ming led Charlotte Russe into a private holding once again.[7][8]

On February 4, 2019, Charlotte Russe filed for Chapter 11 bankruptcy and planned to close 94 of its stores, citing a "dramatic decrease in sales and in-store traffic".[9]

On March 7, 2019, Charlotte Russe announced that will close all of its stores over the next two months. Liquidator SB360 Capital Partners won the auction in bankruptcy court for Charlotte Russe's $160 million worth of inventory, and other assets. Executives were approved an amount of $559,000 in bonuses in order to stay on-board during the shutdown.[10] After the company announced it was closing its stores, the brand was sold to Toronto-based YM Inc., according to a press release.

In April, the company, under new ownership by YM Inc., has announced on its website that it will reopen 100 retail locations. As of June 13, 5 stores have reopened in 5 different states. The company plans to re-open 100 locations including stores in Nevada, Florida, South Carolina, Georgia, Pennsylvania, Michigan, New York, Texas, Rhode Island, New Jersey, and Illinois with more locations coming soon.[11]

By November 22, 2019 the owner claimed to have opened around 135 stores, around 25 per month, with more planned[12]

Important dates
  • 1975: Lawrence brothers open first Charlotte Russe store, in Carlsbad, California.
  • 1990: Charlotte Russe moves into Arizona.
  • 1992: Company expands into Nevada.
  • 1994: Clothing manufacturer Rampage Clothing Co. opens first retail outlet.
  • 1996: Investment firm SKM buys Charlotte Russe.
  • 1997: Company buys Rampage, with 15 stores nationwide.
  • 1999: Charlotte Russe Holding goes public.
  • 2019: Charlotte Russe filed for Chapter 11 bankruptcy and announced that it would liquidate its remaining stores and assets.
  • 2019: Charlotte Russe, under the ownership of YM Inc, announces the brand will be revived with 100 stores and online presence.

References
  1. "About: Charlotte Russe". Archived from the original on July 18, 2015. Retrieved October 1, 2014.
  2. "Charlotte Russe Holding, Inc.: Private Company Information - Bloomberg". Bloomberg.com. Retrieved June 25, 2018.
  3. "Store Locator: Charlotte Russe". Archived from the original on September 30, 2014. Retrieved October 1, 2014.
  4. "Stock:Charlotte Russe Holding (CHIC)". Retrieved October 1, 2014.
  5. Tyko, Kelly; Bomey, Nathan (February 4, 2019). "Charlotte Russe to close 94 stores in bankruptcy: Is your store on the list?". USA TODAY. Retrieved February 5, 2019.
  6. "Charlotte Russe is closing all of its stores and has started liquidation sales". USA TODAY. March 6, 2019. Retrieved March 8, 2019.
  7. "Clothing Firm Charlotte Russe Will Try an IPO On for Size". Los Angeles Times. September 27, 1999. Retrieved October 1, 2014.
  8. "Advent to Acquire Charlotte Russe". Retrieved October 1, 2014.
  9. "Charlotte Russe files for bankruptcy". CNN. Retrieved February 4, 2019.
  10. "Charlotte Russe will liquidate and close all of its stores". CNN. Retrieved March 7, 2019.
  11. "Charlotte Russe Store Locator". Charlotte Russe. Retrieved June 13, 2019.
  12. "Charlotte Russe rapidly expands store fleet - Retail Dive". Retrieved November 22, 2019.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.