Deb Shops files Chapter 11, citing “old, tired stores”

New York - Deb Stores Holding LLC, owner of Deb Shops, has filed for Chapter 11 bankruptcy protection in Delaware, with plans to close stores and sell inventory if it can’t find a buyer for the business.



“Deb’s recent performance has been strained due to a combination of factors, including historic lack of capital invested in business resulting in old, tired stores with unfavorable mall traffic trends and general weakness in the competitive juniors space,” CEO Dawn Robertson said in court papers.



The filing listed assets of between $10 million to $50 million, and liabilities of between $100 million to $500 million.



According to bankruptcy court documents, the retailer’s board of directors approved the filing on Tuesday. The document also showed that the company’s board approved a "chainwide 'going-out-of-business' sale and store closure process, including the retention of a liquidator."



The retailer operates 295 stores.



Deb Shops predecessor, Deb Shops Inc. filed for Chapter 11 in June 2011.