Jewelry and accessories retailer Charming Charlie filed for Chapter 11 bankruptcy Thursday with plans to close all of its 261 stores in 38 states, reports USA Today, including the one in Perkins Rowe.
This is the third store to close in Perkins Rowe this year due to company bankruptcies. Z Gallerie is expected to close its doors by the end of the month after filing for bankruptcy in June, and Kona Grill closed in April.
Bryan LeBlanc, the property manager for Perkins Rowe, says the Baton Rouge location was a “good volume” store.
“The last three closures here were all bankruptcies,” LeBlanc says. “As a developer, you can’t combat that, no matter how well the stores are doing at your facility. It puts a black eye on the center.”
The filing marks the Charming Charlie’s second Chapter 11 case, qualifying as what restructuring industry professionals call a “Chapter 22″ bankruptcy. The retailer closed about 100 stores last year as part of its previous bankruptcy, but those “efforts simply were not sufficient to stabilize” the business and deliver profits, the company said Thursday in a court filing.
At a time when many brick-and-mortar stores are battling to survive against online retailers, the company said it faced “unsustainable operating expenses, including onerous leases.”
The “going-out-of-business” sales and liquidation of other brands is expected to continue.
More than 7,000 store closings are already in the works or completed so far in 2019 across the retail sector, according to Coresight Research, a 20% increase from this time last year. It’s estimated 12,000 stores could close this year.