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 HeadlinesRoseville Proposes 16.5 Percent Rate Hike for WaterThe City of Roseville is holding two community meetings in March to update customers about proposed water and wastewater utility rate increases.
San Juan Water District Responds to CVP Federal Water AllocationsDrought Watch: We all know that California is facing an extraordinary drought. This morning's announcement of federal water allocations through the Central Valley Project is indicative
California Legislation to Refund Illegal TaxesBoard of Equalization Vice Chair George Runner announced today he is sponsoring legislation to extend common sense protections to taxpayers. Assembly Bill 867
Placer County Transit to Take Over Lincoln Bus ServicePlacer County Transit is scheduled to take over operations of the City of Lincoln's fixed-route bus service beginning July 1.
Roseville Crime Report Digest Update (2.26.15)The Roseville weekly crime report digest update for February 26, 2015.
Roseville Celebrity Chili Cook-Off March 20th2015 Roseville Celebrity Chili Cook-Off will be held on Friday, March 20, from 6:30 p.m. to 8:30 p.m. at the Maidu Community Center in Roseville
50 Days of the Dead: BerthaGrateful Dead play an acclaimed show across from the Big Apple in Jersey City, NJ. This version of Bertha captured on August 6, 1974
Ecological Benefits of Large, Intense Wildland FiresAs the California drought continues, with the severity deemed extreme or exceptional, we are all bracing for an early and intense fire season
Gas Prices: Get Ready for IncreaseThe transition from 'winter blend' to 'summer blend' gasoline always brings increases in retail gasoline prices, but nothing you've seen over the past year is likely to match
Free Catalytic Converter Etching in RocklinA free catalytic converter etching event on Saturday, March 7, 2015, at the Sierra College Auto Club
$1.6 Million Energy Efficiency Retrofit Contract SigningFolsom Lake Ford expects to save big on a $1.6 million energy efficiency retrofit and solar project made available through the City of Folsom's green energy financing program
Roseville Police Capture Murder Suspect Following Oakmont LockdownThe lockdown at Oakmont High School has now been lifted.
NEWS: In Case You Missed It