Everything But Water files Ch. 11

New York City Citing the tough economic environment, Swimwear retailer Everything But Water has filed Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del.

The company, which operates 70 stores in 26 states, was acquired by Bear Stearns in 2006 and is now owned by J.P. Morgan (which acquired Bear). Everything But Water will seek a buyer. It is seeking $11 million in debtor-in-possession financing.