Christopher & Banks files bankruptcy, store closures likely

Specialty apparel retailer Christopher & Banks that caters to women ages 40 to 60 has filed Chapter 11 bankruptcy in the District of New Jersey. The company said it expects to close most of its brick and mortar stores. The company has already launched a store closing and liquidation process, but said it will continue to operate its business in the near term.

The Minneapolis-based retail chain has 449 stores in 44 states, including 3 in Arkansas: Fort Smith, Little Rock and Rogers.

“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. I want to extend my deepest gratitude to our dedicated associates, loyal customers and supportive partners for their commitment to Christopher & Banks throughout these challenging times,” said Keri Jones, president and CEO.

The retailer said it is in active discussion with potential buyers for the sales of its e-commerce platform and related assets. The company plans to file the appropriate motion in the coming days. This bankruptcy was not a surprise given recent actions last month. On Dec. 10 the company engaged strategic advisors including B. Riley Securities Inc. to assist with management’s evaluation and pursuit of available strategic alternatives.

In June, the company obtained a $10 million loan under the Paycheck Protection Program. The bankruptcy is not a surprise given the impact COVID-19 has had on non-essential retailers that predominantly derive their revenue from brick and mortar sales.