Popular Women's Apparel Retailer Files for Bankruptcy
Recently, the women's apparel market has experienced some hardships. This past year, American Apparel declared bankruptcy, and eventually Gildan Activewear purchased the company. Now, another popular retailer, The Limited, just declared bankruptcy.
According to USA Today, the U.S. apparel chain closed all 250 stores, then, filed for Chapter 11 bankruptcy. Much like the American Apparel situation, a sale of the company's name ensures it will live on (even without the stores). An affiliate of private equity firm Sycamore Partners paid $25.75 million for the company's intellectual property.
Sycamore made a similar type of purchase with women's apparel chain Coldwater Creek after it filed for bankruptcy. If The Limited follows Coldwater Creek's strategy, it will continue to sell under its name online.
It's difficult to make any sweeping predictions as to what this all means for the apparel market. One thing is certain, however. Brick and mortar stores seem to be struggling, while e-commerce giants are growing at a fast pace.