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01/09/2015

Deb Shops going out of business

Teens will soon have fewer choices when it comes to shopping for the latest fashions.


Deb Shops announced it has won court approval to launch going-out-of-business sales that will culminate with the closing of nearly 300 stores.


“We thank our many customers and dedicated employees for their tremendous loyalty over the years and are very proud of our associates’ commitment to maintaining the high level of customer service we are known for throughout this transition,” said Dawn Robertson, CEO at Deb Shops.


Deb Shops sought Chapter 11 protection in December, hoping a going-concern buyer would step forward. None did, and the company will end its days in the hands of liquidators.


Liquidators Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC will sell off the final inventory, furniture, fixtures and equipment, said Laura Davis Jones, a lawyer for the company.


The judge also granted final approval to financing for the Chapter 11 proceeding, which was launched when Deb Shops’s sliding sales put its debt burden out of reach.


Several teen apparel retailers have been losing market share and struggling to survive.Wet Seal recently warned of layoffs for 3,700 full- and part-time employees as it closed 338 stores.Delia’s warned in December that it was liquidating assets and would file for Chapter 11 bankruptcy protection "in the very near term."


Deb Shops, which was founded in Pennsylvania 80 years ago, currently operates approximately 287 retail locations.