Coldwater Creek Files For Bankruptcy

(RTTNews) - Women's clothing and accessories retailer Coldwater Creek Inc. (CWTR) Friday said 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.

Coldwater Creek said, over the past six months, it has been looking for potential alternatives, including sale of the company. But it failed to find a potential buyer or a source of capital to provide liquidity and then the Board of Directors determined that liquidation would be the best way to maximize value for the company's creditors.

Coldwater Creek intends to hold going out of business sales in the coming months as they are historically busy shopping periods for the retailer. Coldwater Creek's stores and website are currently open for business, and the company expects to commence sales to liquidate its inventory in early May.

To support the wind-down process, the company has received a $75 million commitment, subject to court approval, in "debtor-in-possession" financing from its existing lender Wells Fargo.

Further, Coldwater Creek said it has reached an agreement with its lenders on its bankruptcy filing to maximize creditor recoveries and reduce administrative expenses. The company has also agreed to let inventory liquidators Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC to manage the company's inventory clearance sales.