Plymouth-based Christopher & Banks has filed for Chapter 11 bankruptcy protection and begun liquidation sales as it prepares to close all of its brick-and-mortar stores.
Effects from the pandemic, the retailer said Thursday, stalled progress on its turnaround plan and sales were not enough to keep stores open.
The women's apparel chain, which filed voluntary petitions in the U.S. Bankruptcy Court for the District of New Jersey, said it also is in active discussions with potential buyers for the purchase of its online platform and other assets.
"Since the start of the COVID pandemic, we have taken aggressive steps to protect our business while continuing to serve our customers in a healthy and safe environment," said Keri Jones, CEO of Christopher & Banks, in a statement.
The chain had been in financial trouble before the pandemic and brought in a new leadership team to jump-start its sales.
But restrictions because of the virus and people's reluctance to shop in person hastened issues such as declining mall traffic that already had damaged Christopher & Banks and several other retailers such as J.C. Penney, Lord & Taylor, Neiman Marcus, Brooks Brothers and J. Crew, which also have filed for bankruptcy.
Plus, the pandemic added new challenges for apparel sellers as more people worked from home adopting more casual styles and not buying as many clothes.
"Despite the tremendous advancements we have made in executing our strategic plan, due to the financial distress resulting from the pandemic and its ongoing impact, we elected to initiate this process and pursue a potential sale of the business in whole or in part to position the company for the future," Jones said. "I want to extend my deepest gratitude to our dedicated associates, loyal customers and supportive partners for their commitment to Christopher & Banks throughout these challenging times."