Body Central closes all stores, fires all employees

Apparently closing all of your stores and firing all of your employees is among the actions a retailer can take when it is “exploring strategic alternatives.”

Body Central Inc., which announced early this month that it was $18 million in debt and exploring strategic alternatives, has shuttered all 265 of its stores and fired 2,500 employees.

“The company wanted to reorganize as a smaller chain, but it was unable to raise the financing necessary,” said Gardner Davis, a lawyer who represents the retailer. “This is a tragic development. The company’s 2,500 loyal, hardworking employees are going to lose their jobs immediately.”

Body Central joins a number of women’s clothing chains dealing with default or bankruptcy in recent weeks. Deb Stores Holding LLC and Delia’s Inc. filed for bankruptcy last month, hurt by competition from online and fast-fashion retailers. Wet Seal Inc., meanwhile, said this month it will close about two-thirds of its locations as it strives to save cash after receiving a default notice.

Body Central was founded by Jerrold and Ronnie Rosenbaum, who opened their first store in Jacksonville in the early 1970s. It operates stores in 28 states under the Body Central and Body Shop brands, mostly within malls. The company lost $70.2 million in the 12 months ended in September. Body Central had only $4.5 million in cash and equivalents as of Nov. 3.