The women’s clothing company filed for Chapter 11 on Thursday, the result of “financial difficulties resulting from the pandemic and its continued impact,” the agency said. Christopher & Banks, which has approximately 400 stores in 44 states, said it will close a “significant part” of the stores and is in “active discussion” to sell its website.
The bankruptcy was foreshadowed last year, when the company announced that it had hired an investment banker to refinance its debt and “explore other strategic alternatives”. In May, the company borrowed between $ 5 million and $ 10 million from the Payment Check Protection Program, according to the CNN Business database.
Christopher & Banks admitted in his most recent earnings report that Covid-19 has particularly disrupted the shopping habits of women shopping in stores offering more formal attire. They have become more pragmatic buyers, the company said, opting for leisure clothing rather than clothing for social events.
He is certainly not alone. 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., also closed most of its stores.
With the move to work at home, buying work clothes has gone out of fashion, putting the future of companies that depend on office clothing at risk. New data from the Coresight Survey reveals that more than 8,700 stores closed in 2020 and another 1,400 closed this year alone.