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.
Comment / Share on Facebook
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesOne-Armed Softball Phenom: Part 2Recently, you may have read the first of two columns featuring 17-year-old Katelyn Pavey, a one-armed, fastpitch softball phenom
Surplus Water: Placer County Water Agency Plans SaleThe Placer County Water Agency (PCWA) Board of Directors has approved a resolution that allows for the transfer and sale of up to 20,000 acre-feet of surplus water
Roseville Flash Crime Report (7.23.16)Roseville, CA- Weekly crime report digest update for Roseville, covering the period of July 14- 22, 2016.
Kings Beach Project Wins National AwardKings Beach, CA - A cornerstone project that is transforming the North Lake Tahoe community of Kings Beach's downtown has been given a prestigious national award
Roseville Hospital gets Suessical VisitRoseville, CA- It isn't every day that storybook characters come alive at Kaiser Permanente Roseville Medical Center.
Nevada City Shines Best at Night Nevada City, CA- Nevada City's charm shines more brightly at night. At least that was the takeaway following a midweek date night with my wife.
Rubio's Opens New Restaurant in Roseville August 4thRoseville, CA - Rubio's Restaurants, Inc., the popular fast casual chain known for uniquely delicious coastal cuisine and popularizing the fish taco, has announced the opening of a new location in Roseville
Roseville and Lincoln to Host Girls Fastpitch Western National ChampionshipRoseville, CA - The ASA/USA 14u Class A Girls Fastpitch Western National Championship in Roseville and Lincoln July 25- 31.
Roseville Residents Motoring for Less this SummerRoseville, CA- Roseville residents are motoring for less this summer as gas prices continue to push lower.
Updates on Rocklin HomicideRocklin, CA- The injuries of the victim were consistent with a blunt force trauma-type injury although information about the weapon used will not be released.
Mummy Man Robs Rocklin BankRocklin, CA- On Wednesday, 07/20/2016, at approximately 4:00pm, Rocklin Police responded to a robbery call at the US Bank located inside the Safeway Supermarket
Gunshots in Roseville Lead to Manhunt and Highway ClosuresRoseville, CA- Despite a large manhunt in Roseville following early morning gunshots, it appears the two male suspects have eluded police at this time.
NEWS: In Case You Missed It