Coldwater Creek Going Out of Business
Coldwater Creek Inc.today announced that the Company and all of its U.S. subsidiaries have filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Delaware, in order to facilitate an orderly wind-down of its operations.
Coldwater Creek's stores and website are currently open for business and serving customers. The Company expects to commence sales to liquidate its inventory in early May.
1013 Galleria Boulevard. Ste 140
Roseville, CA 95678
Together with its financial and legal advisors, over the last six months, Coldwater Creek engaged in a thorough analysis of all potential alternatives, including a sale of the Company. Ultimately, the Company and its advisors were unable to find a potential buyer for the Company or a source of capital to provide adequate liquidity to fund the Company's ongoing strategic turnaround initiatives. As a result, the Company's Board of Directors recently determined that an orderly liquidation of the business would be the best way to maximize value for the benefit of the Company's creditors. The Company intends to hold going out of business sales in the coming months, which are historically busy shopping periods for Coldwater Creek.
"First and foremost, we are extremely grateful to all of our associates for thirty years of dedicated service to Coldwater Creek and to the millions of loyal customers who have enjoyed our award winning customer service and beautiful and unique products. Our talented associates continue to impress, performing their duties with professionalism and grace during this period of uncertainty," said Jill Dean, President and Chief Executive Officer of Coldwater Creek. "This difficult decision follows a comprehensive strategic and financial review of the business. The Board of Directors has determined that the actions we are taking represent the best path forward for Coldwater Creek and its stakeholders. While we are extremely disappointed with this outcome, the Company's declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action." She added, "As we begin preparing to wind down our operations, customers should know that our stores and website remain open for business and we will be providing information about the tremendous values that will be available at our inventory clearance sales in the coming weeks."
In conjunction with its Chapter 11 filing, Coldwater Creek has received a commitment for $75 million in "debtor-in-possession" financing from its existing lender, Wells Fargo. Subject to court approval, this financing will be available to support the Company's operations during the wind-down process.
Importantly, and in an effort to maximize creditor recoveries and reduce administrative expenses through a swift and efficient Chapter 11 process and liquidation, Coldwater Creek has reached an agreement with its lenders on a Chapter 11 plan of liquidation that was filed today with the bankruptcy court. The Company has also reached an agreement with inventory liquidators, Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC to manage the Company's inventory clearance sales. The plan of liquidation does not contemplate any recovery for holders of the Company's common stock. The plan of liquidation and related disclosure statement is subject to approval by the bankruptcy court.
Additional information for customers, vendors, equity holders and other interested parties is available on the Company's web site at www.coldwatercreek.com.
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesDowntown Roseville Oktoberfest this WeekendRoseville, CA- Get ready for Oktoberfest this Saturday October 22 at Downtown Roseville's Vernon Street Town Square.
Jack Reacher Opens at IMAX in SacramentoSacramento, Calif. - Set four years since the first film events, Jack Reacher is returning to the headquarters of his old military unit, but reveals that he is now
Genetic Testing Could Prevent DisabilityRecently, I had quite an experience trying to prevent a disability or two in myself. Several years ago, I found online a genetic testing service and later another similar service
Remodeling Your Kitchen - Think WhiteRoseville, CA- Sacramento Realtor, Julie Jalone of MagnumOne Realty in Roseville, writes about the basics of remodeling kitchens to get the most out of your investment when selling a home.
Desert Trip: You Just Might Find, You Get What Ya NeedIndio, CA- "Any more fun and we'd be in trouble". Perhaps it was the heat of the desert sun speaking, but
Toyota Tacoma TRD Off-Road provides good versatilityRoseville, CA- Toyota enjoys huge sales numbers in the U.S., where reportedly half the midsize trucks sold are Tacoma models
Placer Gives: Local Resident Leaves Lasting Gift for Disadvantaged YouthRoseville, CA - For Irmgard ("Else") Schichtel a childhood in Nazi Germany set in motion a circuitous path towards a permanent fund at Placer Community Foundation that
Salmon Advocate at Next Rooster Tails BreakfastThe Rooster Tails Fishing Club monthly breakfast will be held at the Auburn Elks Lodge on October 21.
Ridge Tahoe's Dan Garrison Retiring after 34 YearsDan Garrison, the Ridge Tahoe's senior vice president/general manager, will retire in December following a storied 34 years at the resort.
Citrus Tree Quarantine Now at 118 Square MilesAfter the discovery in September of an insect that can carry a disease fatal to citrus trees, the California Department of Food and Agriculture has placed trees in a 118-square-mile area near Lincoln
Mountain Mandarin Festival Seeks VolunteersAs the Mountain Mandarin Festival, slated for November 18-20, has grown from several hundred visitors to 30,000 visitors, the need for volunteers has multiplied.
Sierra College Press Release: King SequoiaRocklin, CA - Sierra College Press has published "King Sequoia" by author and retired national park ranger, William C. Tweed.
NEWS: In Case You Missed It