SAN FRANCISCO, Feb. 4, 2019 /PRNewswire/ — Charlotte Russe Holdings Corporation together with its subsidiaries (the “Company” or “Charlotte Russe“) today announced that the Company has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on February 3, 2019. Charlotte Russeintends to use these proceedings to facilitate an orderly wind-down of a group of approximately 94 of its store locations, while continuing to pursue a going-concern sale of the business and assets.
Charlotte Russe and Peek stores and online platforms are currently open and continuing to serve customers. The Company will provide more details about the plans for the closing locations of Charlotte Russe and Peek and their store closing sales in the near term.
Charlotte Russe has received a commitment for a debtor in possession financing in the maximum amount of $50 million. If approved by the Bankruptcy Court, the financing will support the Company’s operations and administration during the Chapter 11 proceedings.
Charlotte Russe has filed a number of customary motions with the U.S. Bankruptcy Court seeking authorization to operate its business in the ordinary course during the Chapter 11 proceedings, including, without limitation, authority to continue payment of employee wages and benefits, and amounts due to shippers and warehousemen, utility service providers and taxing authorities. The Company also seeks authorization from the Court to continue to honor certain customer programs.