Fashion accessory retailer Charming Charlie will close all its stores after going bankrupt for the second time in less than two years. More than 3,000 full- and part-time employees could lose their jobs.
Charming Charlie Holdings Inc. filed for Chapter 11 protection in Delaware with plans for going-out-of-business sales at about 261 stores, according to court documents. The chain expects the liquidation to take about two months.
Founded in Houston in 2004, Charming Charlie has stores in malls across the U.S. It's known for organizing its bright merchandise by color, and its core customer base is middle-aged women, Chief Financial Officer Alvaro Bellon said in a court declaration.
In Jacksonville, Charming Charlie operates stores at The Avenues mall and River City Marketplace.
The shutdown adds to the carnage in the retail sector that claimed more than 5,800 outlets last year, according to Coresight Research. This year is already worse, with 7,062 announced and Coresight estimating the total for all of 2019 could hit 12,000.
After emerging from its previous bankruptcy in April 2018, the company "continued to face challenges that make it impossible for Charming Charlie to continue as a going concern," Bellon said. Those included fewer mall visits by customers, landlords that required the retailer to keep some weak stores open and lack of capital. By the time it filed for bankruptcy, Bellon said, Charming Charlie had only $6,000 of cash on hand.
Charming Charlie loaded up on lower-quality inventory after its last bankruptcy in an attempt to boost liquidity -- its credit line grows along with its inventory levels. But those goods sat unsold, resulting in markdowns and thinner margins, Bellon said. In addition, vendors took longer than expected to ease off on tough trade terms, such as requiring deposits or cash on delivery.
The company arranged for a $13 million loan from existing creditors including Second Avenue Capital and White Oak Commercial Finance to help finance its wind-down. Hilco Merchant Resources and SB360 Capital Partners were hired to run liquidation sales, which are expected to raise $30 million. Hilco helped the company close outlets as part of its prior bankruptcy, court papers show. The retailer expects to vacate its stores by Aug. 31.
Charming Charlie in the past paid severance to certain terminated employees, but discontinued that program as of the bankruptcy filing, court papers show. The company is, however, seeking court permission to give bonuses to store-level employees for staying on through the liquidation.
The company has debt of about $82 million, comprised of an asset-based credit line, a term loan facility and vendor payment credit line, court papers show.
A representative for Charming Charlie didn't immediately return a call seeking comment.
The case is Charming Charlie Holdings Inc., 19-11534, U.S. Bankruptcy Court for the District of Delaware.
FAQs
Fashion accessory retailer Charming Charlie will close all its stores after going bankrupt for the second time in less than two years. More than 3,000 full- and part-time employees could lose their jobs. Charming Charlie Holdings Inc.
Did Charming Charlie close all their stores? ›
Charming Charlie was founded by (Charming) Charlie Chanaratsopon in 2004, offering women's apparel, accessories and more, around by color. The brand filed for bankruptcy in 2017, reorganized and came back, then announced a 2nd bankruptcy in July 2019, closing all 261 remaining stores.
Who owns Charming Charlie now? ›
Chanaratsopon bought back the brand out of bankruptcy, and today it is opening physical stores again, and also has its own store on Amazon. Chanaratsopon seems relatively undaunted by his experience with his previous company's rise and fall. He sees up to 75 stores ahead for the revived Charming Charlie.
Why did Charming Charlie fail? ›
At its height, Charming Charlie reportedly had more than 390 stores in North America, the Middle East and the Philippines. But in a 2019 court filing, the company wrote that it faced "unsustainable operating expenses, including onerous leases."
Can I still use my Charming Charlie gift card? ›
A note on gift cards
We're so excited that Charming Charlie has re-launched, and while we're still the brand you love, we're not exactly the same. Unfortunately, we are not able to redeem old Charming Charlie gift cards at this time.
How many stores do Charlies have? ›
Coed-y-Dinas is one of the seven stores making up the Charlies Stores Ltd Group. The other branches are located around the Mid Wales and Borders countryside in Newtown, Aberystwyth, Carmarthen, Shrewsbury and Queensferry. We are extremely proud to be a Welsh, independent, family-run retailer.
How do I contact Charming Charlie? ›
How much is Charming Charlie worth? ›
Charming Charlie was founded in 2004 by Houston native Charlie Chanaratsopon. In 2016, Chanaratsopon was listed on Forbes' list of America's Richest Entrepreneurs Under 40 with a net worth of $450 million.
Who is the CEO of Charming Charlie? ›
Where did Charming Charlie originate? ›
Charming Charlie Company History Timeline
The label was founded in 2004 in Texas and today has numerous stores across the USA. The company had grown to more than 390 locations in the United States, Canada, the Middle East and the Philippines by late 2017.
Charming Charlie - Women's Handbags & Accessories -Official Website. We're a fashion brand for women - known for our fun, colorful stores across the U.S. Shop our trendy collections from handbags, accessories, shoes, and apparel. Free shipping over $60!
What if I have a gift card for a business that closed? ›
If your card is for a small or locally-owned business, petition your state's attorney general. The Attorney General's Office may be able to force the business to honor gift cards. For larger corporations, you can file a claim in court for the amount your gift card is worth.
What happens to gift cards that are never used? ›
Some states, like Delaware and New York, have passed laws that entitle the state to unclaimed property, including gift card money. But by and large, the corporations who issue the cards still get to keep most unused gift card funds. Despite this, retailers claim they make more money when consumers spend their cards.
Do old gift cards expire? ›
Federal Law Offers Protections
Under the law, a gift card cannot expire until at least five years from the date it was activated. The law also places general limitations on fees.
Who owns Charlie's meats? ›
How it all began. On October 28, 1952, Charlie Cheung arrived in Toronto from China in search for a better future. He was only 23 years old. His 1st job was at Fat Laundry, which paid $10 per week.
Are dogs allowed in Charlies stores? ›
We are afraid no dogs except registered assistance dogs are allowed in-store.
Who owns Charlies Fruit Market? ›
After 15 years of running their family fruit and vegetable business, brothers Jonny and Michael Tabet decided to start a new venture using their fresh produce knowledge grown from Charlie's Fruit Market (in Everton Park), Charlie's Fruit Wholesale (based in Gaythorne) and Charlie's Fruit Online.
How many employees does Charming Charlie have? ›
Charming Charlie has 1,174 employees Who is the CEO of Charming Charlie?
Does charming have free returns? ›
If you change your mind: Within 14 days, with the packing slip or receipt and tags attached, receive a full refund in the original form of payment. Item is still in new condition, unused and undamaged. Tags are attached to item and item remains in original packaging.
Does Charming Charlie ship to Canada? ›
Please note: All fragrances are shipped via standard shipping. At this time we only ship throughout the Continental U.S., excluding Hawaii, Alaska, Guam and Puerto Rico.
Depending on the style of bag you choose, purses are available in eco-friendly vegan leather or a combination of materials. You can also find heavy canvas tropical print totes trimmed with faux leather or a bag in a soft velvet fabric with gold-toned hardware. Content provided for informational purposes only.
How does Charlie get money? ›
Charlie. Charlie did have a pretty lavish lifestyle, and fans had often wondered how a moderately successful jingle writer could afford this massive beach house and so much luxury. He did find a sudden bout of incredible success with his Charlie Waffle stint which saw him earn good money as a children's songwriter.
Who is the marketing director of Charming Charlie? ›
Sheila Field serves as the Chief Marketing Officer of Charming Charlie.
What job does Charlie have? ›
Charlie is a jingle writer and wrote the fictional Maple Loops song for an advert. This gave him a truckload of money, which obviously gave him entry into the easy life. While he appears to do no work, he has also written other jingles, such as Charlie Waffles, which is for kids.
Who is Charlie Main? ›
Charlie Main - Senior Vice President of Global Business Units - Jabil | LinkedIn.
Is Charming Charlie sustainable? ›
With the company's improved financial position, Charming Charlie said it now has a “sustainable capital structure to support its Back-to-Basics Strategy.” With the company's improved financial position, Charming Charlie said it now has a “sustainable capital structure to support its Back-to-Basics Strategy.”
How did Charlie get his name? ›
A pet form of Charles, which comes from the Old English word ceorl and the German Karl, both meaning "free man". Charlie was the lead character in Roald Dahl's much-loved children's classic "Charlie and the Chocolate Factory".
When did Charming Charlies start? ›
Where is Charming Charlie in CT? ›
There are four of the stores in Connecticut according to the Charming Charlie website: West Hartford, Plainville, South Windsor, and Guilford.
Is it illegal to leave business cards around? ›
No. It's legal to drop cards at doors or stick them between tiny door gaps.
Spreads Brand Awareness
One of the most cost-effective ways to spread brand awareness is by offering gift cards. As your customers love your products or services, they will want to share their experiences with their friends and family.
Why do businesses give gift cards instead of cash? ›
Gift cards are a preferred motivator in both the consumer and business-to-business arena. They build on the strengths of non- cash incentives by offering rewards that are more memorable and can be redeemed for merchandise or travel that recipients wouldn't otherwise buy for themselves.
Should I keep old gift cards? ›
If you do have old plastic gift cards and want to dispose of them safely, Enck recommends throwing them away in the trash. "Definitely don't put it in your recycling bin, and contact companies and tell them to stop making PVC gift cards as soon as possible."
What is the average gift card amount? ›
Gift cards are one of the most asked for gifts, but how much of the value is never used? Answer: The average unused amount is $175 per person, up from $116 last year.
How much money is wasted on unused gift cards? ›
The report said there is as much as $21 billion of unspent money tied up in unused and lost gift cards. Of those surveyed, a majority of respondents said their unredeemed cards were worth $200 or less. The Credit Summit report is based on a December 2022 survey of 1,200 consumers aged 16 and older.
Can a stolen gift card be traced? ›
Gift cards often can't be refunded, traced, or disputed.
Stores can't trace gift cards, and it's difficult for consumers to prove they weren't the ones who used them. Scammers know that as soon as a gift balance is compromised, the money is theirs.
What to do if someone used my gift card? ›
After you have filed a police report, contact the company that issued the gift card. Be sure to hang on to the gift cards and your receipts. You may need to provide this information to the card issuer. Gift card issuers may have specific procedures for handling fraud claims, so be sure to follow their instructions.
Can gift cards be traced back to a credit card? ›
Gift cards tied into credit card networks, such as Visa prepaid cards, can be traced. For gift cards tied to individual merchants, it depends on what systems and processes the merchant has in place.
Who is Charlie Charming? ›
Prince Charlie Charming was the fourth son of King Chester Charming. When he went missing, his brothers (Chance, Chase & Chandler) went looking for him and during the search they met their brides (Cinderella, Sleeping Beauty & Snow White).
What kind of creature is Charlie? ›
Charlie is an anthropomorphic Bigfoot.
In Season 8, they get married and visit Paris for their honey moon. Charlie died there. It was revealed at his funeral that Rose caught him cheating on her and at a train station, he "accidentally" fell in front of an on coming train. Alan, Evelyn and Berta suspect her of murder, but don't do anything about it.
