Coldwater Creek Inc. (CWTR: Quote) is preparing to file for bankruptcy-court protection within about a week as the specialty retailer of women's apparel, jewelry and accessories grapples with higher debt and declining sales, the Wall Street Journal reported Monday, citing people familiar with the matter.
Sandpoint, Idaho-based Coldwater Creek made attempts to avoid a bankruptcy filing by refinancing debt or selling itself to a private equity firm, but was reportedly unsuccessful in those attempts. The company had said in mid-October 2013 that its board of directors authorized the evaluation of strategic alternatives to enhance value for stockholders.
In December 2013, Coldwater Creek reported a net loss for the third quarter that widened to $23.79 million or $0.78 per share from $20.53 million or $0.67 per share in the year-ago period. Net sales for the quarter declined 18 percent to $154.49 million from $188.12 million in the prior-year period.
Coldwater Creek had total liabilities of $353.10 million as well as cash and cash equivalents of $6.79 million as at November 2, 2013. The company ended the third quarter with 343 premium retail stores, 36 factory stores, and 7 spas.
CWTR closed Monday's trading at $0.16, down $0.51 or 76.12 percent on a volume of 8.55 million shares.
by RTT Staff Writer
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