Trend retailer Categorical Inc has filed for Chapter 11 chapter in the US and intends to shut greater than 100 shops, it stated on Monday.
The retailer whose portfolio consists of manufacturers equivalent to Categorical, Bonobos and UpWest Categorical, listed property and liabilities within the vary of $1 billion to $10 billion, in line with a submitting with the chapter courtroom in Delaware.
The corporate additionally named Mark Nonetheless as its new CFO, efficient instantly. The manager has served as interim CFO since November 2023.
As a part of the chapter course of, the corporate will shut roughly 95 Categorical retail shops and all of its UpWest shops, beginning Tuesday, it stated, with out specifying the areas.
The corporate operates about 530 Categorical retail and Categorical Manufacturing facility Outlet shops in the US and Puerto Rico and round 12 UpWest retail shops, in line with its web site.
Launched in 1980, Categorical has been battling with tender client demand as a consequence of slowing spending patterns and elevated value sensitivity in discretionary classes.
Categorical has acquired a dedication for $35 million in new financing from a few of its present lenders, it stated.
The multi-brand style retailer stated it expects to conduct enterprise as traditional because it initiates a court-supervised course of to facilitate a proper sale course of.
The corporate stated on Monday that it acquired a non-binding letter of intent from a consortium led by WHP World for the sale of a considerable majority of its retail shops and operations.
Model administration agency WHP World, which owns Toys “R” Us and style labels equivalent to Anne Klein, took a 7.4 p.c stake in Categorical final yr.
By Devika Nair and Mrinmay Dey; Editor: Sonia Cheema
Study extra:
The Trend and Administration Missteps That Left Categorical Clinging to Solvency
The retailer has struggled to maintain tempo with the occasions and has occupied an more and more untenable spot: not prestigious sufficient to compete with the posh manufacturers, but too costly to go head-to-head with quickly rising low-cost rivals.
