For savvy jewelry shoppers looking for attractive merchandise that ranks somewhere between Claire’s and Macy’s, Charming Charlie has been a popular retailer with its trendy, pocketbook-friendly offerings in their stores nationwide. But soon, patrons are going to find their brick-and-mortar locations hard to find.
Operating in 42 states and six other countries — largely in the Middle East — the Houston-based Charming Charlie filed for Chapter 11 bankruptcy on Monday, according to Forbes. The company operates 370 stores in the U.S. but will close 97 of them by the end of the year, despite the busy Christmas shopping season, according to The Birmingham News.
"By reducing the size and scale of our operations, we have the opportunity to stabilize the business. We also will be better equipped to read and react to trends and what our customers want, which had been the hallmark of our success,” assured interim CEO Lana Krauter.
“This was a challenging decision to make, but we know that it is in the best interest of Charming Charlie, our customers, our vendors, and our employees moving forward,” she added in her statement, adding that, “We are confident that with the right business plan and the continued support of our stakeholders, employees, and customers, Charming Charlie will be well positioned for the future.”
As for why they’re closing so many locations, CFO Robert Adamek explained, “The general shift from brick-and-mortar retail has been further exacerbated by merchandising miscalculations, lack of inventory, an overly broad vendor base, all of which has led to underperformance and reduced sales.”
Brick-and-mortar retailers nationwide have not found 2017 to be a friendly year as more-and-more people look to online shopping and specialty stores for more convenient or unique experiences. Abercrombie & Fitch, BCBG, Guess, The Children’s Place, Gymboree, J. Crew, J.C. Penney, Macy’s, Michael Kors, Rue21, Sears, Kmart, Toys R Us, American Apparel, Bebe, HHgregg, RadioShack, Wet Seal, Gap, Banana Republic, Teavana, PacSun, Men’s Wearhouse, and Payless ShoeSource have all announced massive closures or complete shutdowns.
As for which of Charming Charlie’s stores would be shutting their doors for good, the company has not yet provided a list. However, The Birmingham News indicated that Alabama stores in Tuscaloosa, Bessemer, and Leeds would close.
What do you think of this? In other news, after Democrat Doug Jones’ defeat of Republican Roy Moore Tuesday night, he’s revealing what President Trump said to him in response.