Charlotte Russe Holdings Corp., a fashion retailer for women in their teens and 20s, plans to close 96 stores across the country, including at the Mall of America in Bloomington and Burnsville Center in Burnsville.
The company said Monday that it filed for Chapter 11 bankruptcy protection to keep its operations afloat. It has received debtor-in-possession financing of $50 million, which if approved will support the company and its 462 ongoing stores through the restructuring process.
The company's Minnesota stores in Ridgedale, Eden Prairie Center, Maplewood Mall, Albertville Premium Outlets, St. Cloud and Mankato are not on the closing list. The company also owns the children's chain Peek Kids, but none of those 10 stores are slated for closure.
Charlotte Russe is the latest in a long string of retailers that have shuttered stores or closed entirely, including Sears, Kmart, Shopko, J.C. Penney, BCBG, Bebe, Nine West, Claire's, Sam's Club, Gap, Banana Republic and Bon-Ton stores such as Herberger's.
In 2019, retail analysts expect to see store closings from Christopher & Banks, Lowe's, Children's Place, Destination Maternity and Henri Bendel.
Liquidation sales are expected to start later this week at Charlotte Russe and will last six to eight weeks, said a company spokeswoman.
The company was founded in 1975 and purchased in 2009 by Advent International, a private equity firm, for $380 million. It has been on a closure watch list for a couple of years. In 2016, Fitch Ratings put the company's debt on its "bonds of concern" list.