IBJNews

Retailer Coldwater Creek going out of business

Back to TopCommentsE-mailPrintBookmark and Share

Coldwater Creek Inc., a 362-store women’s clothing chain that has four stores in Indianapolis-area malls, filed a Chapter 11 petition Friday to liquidate inventory in going-out-business sales to begin in time for Mother’s Day.

The retailer has stores at the Fashion Mall at Keystone, Greenwood Park Mall, Hamilton Town Center in Noblesville, and Metropolis in Plainfield.

It has four other stores in Indiana, in Edinburgh, Evansville, Fort Wayne and Granger.

Listing assets of $278.5 million and debt totaling $361.3 million, the Sandpoint, Idaho-based company tried without success to find a buyer or investor.

Coldwater intends to hold an auction on May 1 to select the liquidator. The first bid will be submitted by a joint venture between Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC.

Acting as agents, they guarantee Coldwater will recover at least 97 percent of the cost of the merchandise, estimated to have a total cost of $90 million to $100 million. Once the liquidators recover expenses of the sale, the guaranteed amount, and an 8.5-percent fee based on the cost of merchandise, they will split the excess 50-50 with Coldwater.

The proposed schedule calls for a hearing to approve sale procedures on April 23, followed by the submission of competing bids by April 28, an auction on May 1, and a sale-approval hearing by May 6.

At their peak in 2006, Coldwater’s sales were $1.1 billion. For the nine months ended Nov. 2, sales of $460 million translated into a $61.3 million operating loss and a $59.6 million net loss.

For the fiscal year ended Feb. 1, 2013, sales of $742.5 million brought a $68.7 million operating loss and an $81.2 million net loss.
 

ADVERTISEMENT

  • quality
    I used to get all my outfits from them. But in the past 5 years their quality has suffered dramatically. Flimsy materials, poorly sewn, ... NOT worth the price they were asking for
  • Old Lady Speaks
    I'm an old lady (66( with a still-decent figure (size 8) who doesn't wear sweaters with birds and flowers on them. I have shopped at Coldwater Creek for the past few years for basic wardrobe items because they are cut for a slightly more mature body type and they fit. It's a shame they're going out of business because there aren't many clothing lines designed for older women. I think they missed the boat by not being more fashion-forward.
  • Wrong store..
    I think you are confusing Coldwater Creek with Christopher & Banks. They are the ones with the ridiculously over embellished sweaters that the 70+ set seems to favor.
  • Used to shop
    Styles and quality seemed to have changed. Stopped shoping there two years or more ago.
  • To Ellen
    I've got news for you "boomers" were not the only people who bought from Coldwater Creek. My mother isn't a boomer and she bought stuff.
  • Bailout
    OMG OMG OMG! 362 Stores! 7000 jobs! Too Big To Fail! Bail them Out! OMG OMG!
    • Surprise indeed
      That's unfair. They also have robins and bluejays.
    • No surprise
      No big surprise here. There are only so many sweaters with cardinals on them you can buy for Grandma. There are a few other stores out there that will fold if they're dependent solely on the "boomers".

      Post a comment to this story

      COMMENTS POLICY
      We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
       
      You are legally responsible for what you post and your anonymity is not guaranteed.
       
      Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
       
      No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
       
      We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
       

      Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

      Sponsored by
      ADVERTISEMENT

      facebook - twitter on Facebook & Twitter

      Follow on TwitterFollow IBJ on Facebook:
      Follow on TwitterFollow IBJ's Tweets on these topics:
       
      Subscribe to IBJ
      1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

      2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

      3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

      4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

      5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

      ADVERTISEMENT