US women clothing chain files for bankruptcy due to ‘pandemic-induced financial distress’

Women’s clothing chain Christopher &
Banks Corp has joined
the long list of retailers filing for bankruptcy amid the coronavirus pandemic.

The Minneapolis-based clothing
chain, in a press release on Thursday, announced that it has filed for Chapter 11 in the United States
Bankruptcy Court for the District of New Jersey.

The company “expects to close a significant portion, if not all,
of its brick-and-mortar stores,” the news release said.

The
company has launched a “store closing and liquidation process” and “is in
active discussion with potential buyers” for the sale of its online business.

Also Read: 250,000 small UK businesses to face bankruptcy, courtesy Brexit, COVID-19: Study

In a court declaration, Keri Jones, president and
CEO, said, “Unfortunately, given the debtors’ continued
operating losses, decline in sales and the limited runway, the debtors were
unable to execute on any out of-court solution for their liquidity constraints.”

Jones also released a statement saying, “Since the
start of the COVID pandemic, we have taken aggressive steps to protect our
business while continuing to serve our customers in a healthy and safe
environment.”

“Despite the tremendous advancements we have
made in executing our strategic plan, due to the financial distress resulting
from the pandemic and its ongoing impact, we elected to initiate this process
and pursue a potential sale of the business in whole or in part to position the
Company for the future,” Jones added.