Caché filed for Chapter 11 Bankruptcy protection earlier today, which gives the company protection from creditor lawsuits while it reorganizes its finances.
The New York company said Wednesday that it will keep running its business, but it also will continue to close stores and sell or renegotiate some of its leases. Caché sells dresses, sportswear and accessories and currently runs 218 stores. The retailer has secured up to $22 million in financing from Salus Capital Partners to keep operating during the bankruptcy proceeding. According to documents filed in court, Caché listed assets of $10 million-$50 million and liabilities of $50 million-$100 million. The mall-based retailer has not reported a profit in the past nine quarters.
“We believe that this action provides (Caché) the greatest opportunity to secure a strategic partner while maximizing recovery to our stakeholders,” Chairman and CEO Jay Margolis said in a statement from the company. Caché blamed the depressed brick-and-mortar retail market, the growth of online shopping and rapidly changing consumer tastes for its Chapter 11 filing.
Caché now joins a list of retailers that have sought Chapter 11 protection over the past couple months that includes The Wet Seal Inc., Delia’s Inc. and Deb Stores.