A bankruptcy filing and an expected quick liquidation will spell the end for Johnson City’s Coldwater Creek women’s clothing store.
Last week the company announced that, after being unable to find a buyer or a new funding source, it filed petitions under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del., and will begin winding down operations immediately.
The company has stopped purchasing goods and services, and some of the chain’s 334 retail stores, one of which is in the Peerless Shopping Centre on North Roan Street, will hold going-out-of-business sales starting next month to sell off the remaining inventory.
A representatives of the company reached Thursday did not supply much information regarding the liquidation’s effect on Johnson City’s store.
Andrew Squire, an account executive at the public relations firm Joele Frank, said he wasn’t sure how many employees work at the Roan Street location or when the store will fully close.
Gary Kalogeros, property manager for Peerless Properties and Development, said he has also had difficulty getting concrete answers from the tenant of Peerless’ shopping center.
Kalogeros did say he is “looking fast and hard” for a new chain to take up residence in the 5,000-square-foot retail space when Coldwater Creek vacates.
“We’ve had to turn down some tenants in the past, because we didn’t have an available space large enough for them,” he said. “It’s very nicely built out, I’m sure somebody out there might be able to jump into it fairly quickly.”
If a new retailer takes up space in the suite, it will join anchor Talbots and Joseph A. Bank Clothiers.
Coldwater Creek has faced declining sales since 2010, which company officials attributed to the economic downturn.
Upon the announcement of the bankruptcy declaration and the liquidation plans, the value of the company’s stock plummeted.
In the bankruptcy announcement, Coldwater Creek representatives wrote it’s likely the common stock will be suspended from trading and will eventually be delisted.
The liquidation plan does not include recovery for stockholders.
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