Another major mall store is closing its doors after it failed to find a buyer to keep the company open.
Charlotte Russe Holdings Corp. confirmed late Wednesday that it plans to close all stores, including at the Dayton Mall, Mall at Fairfield Commons, Cincinnati Premium Outlets and one that was previously set to close at Liberty Center, according to multiple media reports.
The company’s website announced going out of business sales begin today and the online store has closed.
The womens apparel retailer filed for Chapter 11 bankruptcy Feb. 4. A stalking horse bid in the middle of the month started a two week clock to find a buyer who would keep the chain of more than 500 stores alive.
Instead liquidator SB360 Capital Partners bought the chain’s asset, but not its intellectual property, meaning that the brand could still reemerge similar to Elder-Beerman and Toys “R” Us.
The company employs about 8,700 people, according to the Wall Street Journal.
Several other traditional mall stores have announced thousands of closures this year, including Payless, Gap, Gymboree, Crazy 8 and Things Remembered. While any one of these stores is simple to overcome some industry experts are expressing concern over the number of in-line tenants closing, according to DBRS, a credit rating agency that tracks retail and real estate loans.
Though anchor stores occupy more space, the rent is usually lower per square foot than smaller stores, according to DBRS. Losing in-line tenants can mean a growing loss of higher-yielding tenants in line at the malls while owners look for ways to replace major vacant department store spaces.
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