The women’s clothing company filed a lawsuit against Chapter 11 on Thursday as a result of “The financial distress caused by the epidemic and its ongoing impact,” said Christopher & Banks, which has about 400 stores in 44 states, it will close “a significant portion” of its stores and stay in the state. “Active chat” to sell their website
Bankruptcy was predicted last year when the company announced it had hired an investment bank to refinance its debt and In May, it received between $ 5 million and $ 1
0 million in loans from Paycheck protection, according to CNN Business.
Christopher & Banks admitted in a recent revenue disclosure that Covid-19 had interrupted shopping habits, especially for women who shop in stores with more formal wear, the company said they became shoppers. It is more practical to wear it for leisure, rather than for social engagement.
It’s definitely not alone. Other retailers cited similar reasons in filing for bankruptcy last year. Ascena Retail Group owner Ann Taylor, Loft and Lane Bryant said the company’s business had been “ severely disrupted ” by the epidemic and closed. Hundreds of stores, RTW Retailwinds, owner of New York & Co., also shut most of their stores.
With the switch to work from home, shopping for work clothes is out of fashion and is detrimental to the future of companies that rely on office attire. New data from Coresight Research reveals that more than 8,700 stores closed in 2020 and 1,400 more closed this year.