Us Fashion Accessories Retailer Charming Charlie Second Filing For Bankruptcy

Recently, Charming Charlie, an American fashion accessory retailer, has applied for bankruptcy protection in Delaware two, and plans to close its 261 stores. The bankruptcy liquidation is expected to be completed within two months. After closing the store, more than 3000 full-time and part-time employees will be unemployed.

According to court documents, Charming Charlie currently has a debt of about $82 million, including asset based credit lines, regular loan quotas and suppliers' payment of credit lines. The company's "leasing costs are heavy and can not bear the cost of continuous operation", and all efforts made so far can not help the company "continue" operation.

At the end of 2017, Charming Charlie filed for bankruptcy protection. According to sources, in order to avoid bankruptcy, Charming Charlie is continuing negotiations with creditors, hoping to reach a debt restructuring agreement.

After the first application for bankruptcy protection, Charming Charlie reached a restructuring agreement, which received $20 million in debt financing from the current regular borrowers and secured 35 million US dollars in assets secured loans from the existing lender.

It is reported that Charming Charlie ended its first bankruptcy protection in April 2018, during which the company closed nearly 100 stores, including the flagship store in Fifth Avenue, New York.

In 2018, in order to promote the smooth implementation of the restructuring plan, Charming Charlie announced its restructuring of its top management team, upgraded Rob Adamek to chief operating officer, appointed Joy Garcia as senior vice president and chief marketing officer, and upgraded Jason Warr to vice president of e-commerce. As early as in 2016, there were reports that Charming Charlie was unable to cope with highly dispersed competitive markets due to insufficient operating scale, and began to hire professional advisors to help debt restructuring.

About Charming Charlie

Charming Charlie, founded in 2004, is headquartered in Houston, USA. Its founder is Charlie Chanaratsopon, a Thai American. It is famous for its colorful jewelry, handbags and clothing. The price of Charming Charlie's fashion jewellery is generally not more than 20 dollars. The company is committed to providing customers with fresh and interesting things. The main competitors are the accessories counters in Messi's department store. Charlie Chanaratsopon has been listed in the list of the top 40 entrepreneurs in Forbes, worth 450 million US dollars.