Two Local Stores Closing as Coldwater Creek Shuts OperationsMonday, April 21, 2014
Two San Diego County stores are among 350 being closed by Coldwater Creek Inc., as the Idaho-based women’s clothing and accessories retailer shuts all of its locations as part of a recent Chapter 11 filing in U.S. Bankruptcy Court.
The local stores are at The Forum Carlsbad and Westfield North County in Escondido. The retail company said it expects to begin sales to liquidate its inventory in early May.
Coldwater Creek officials said the struggling retailer analyzed alternatives with its financial and legal advisers over the last six months, but the company was unable to find a potential buyer or source of capital to finance a turnaround. Going-out-of-business sales will take place over coming months until liquidation is complete.
In conjunction with the Chapter 11 filing, Coldwater Creek has received a commitment for $75 million in “debtor-in-possession” financing from its existing lender, Wells Fargo. The financing will support the retailer’s operations during the wind-down, subject to court approval, officials said.
Coldwater Creek (Nasdaq: CWTR) was founded in 1984 and is headquartered in Sandpoint, Idaho.