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 HeadlinesUC Davis Alzheimer's Disease Center in Walnut CreekThe UC Davis Alzheimer's Disease Center, one of only 27 research centers designated by the National Institutes of Health's National Institute on Aging, has established a new clinic
Water Restrictions Expanded for PCWA CustomersDrought Watch: The Placer County Water Agency Board of Directors adopted the Stage 2 Water Warning condition under PCWA's Water Shortage Contingency Plan.
Maui Vacation: Journey Into ParadiseAnother magnificent day in Maui, where the possibilities seem almost limitless in the pursuit of fun.
A Taste of Excellence in Rocklin on May 2The Board of Directors of the Sierra College Foundation is pleased to announce the 11th Annual A Taste of Excellence, the organization's largest fundraising effort
Mazda CX-5 SUV is a WinnerMazda definitely made a wise move several years ago, introducing the CX-5 in hopes that it would fare better
The Fire Fee Shell Game: You Lose!Democrats in the California Legislature seem to be facing the reality that the fire tax they passed with the Governor's help in 2011 is unfair
Bipolar Disorder: Man Has Success (ATOU Cares)Sixty-seven year-old John Martin has bipolar disorder 1, a form of the disorder in which the manic state dominates.
Sutter Roseville Medical Center Opens New ChapelSutter Roseville Medical Center (SRMC) dedicated its new chapel this week, highlighting the beautiful space available to patients, visitors and staff
Deputy Secretary of Commerce Kicks Off Cap-To-CapOver 320 regional business, civic and elected officials travel to Washington, D.C. this week to meet with federal representatives to advocate on behalf of the six-county Sacramento region.
Miss Placer County Pageant Accepting ApplicationsMiss Placer County Pageant accepting applications for the June 27th pageant at the Placer County Fair.
Rocklin Crime Report Digest Update (4-17-15)Rocklin crime summary and digest update report for the period of April 6- 12, 2015.
Roseville Crime Report Digest Update (4.17.15)Weekly crime report digest update for Roseville, April 17, 2015
NEWS: In Case You Missed It