Delia’s Inc., the struggling clothing chain that caters to teenage girls, said it will file for Chapter 11 bankruptcy protection and liquidate all merchandise after failing to find a buyer.
Delia’s will seek bankruptcy protection in the “very near term,” according to a statement from the New York-based company today. The retailer has entered into an agreement with Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC, to dispose of assets, including fixtures and equipment.
In September, the retailer said it had received several inquiries about a takeover and that its board was exploring strategic alternatives, including a sale or merger, or debt or equity financing. The company was unable to find a partner, or obtain an acquisition or capital proposal, Delia’s said today.
Delia’s will seek the bankruptcy court’s approval to close all existing stores and distribution centers, according to today’s statement.
Delia’s, hurt by sluggish mall traffic and slow website orders, had previously warned in a filing that it might not have enough cash to last the next 12 months. The company’s shares have fallen more than 86 percent this year.
For more retail coverage, and how the rise of e-commerce has driven various chains to bankruptcy, see Reconsidering Real Estate.