Simply Fashion files Chapter 11

New York -- Simply Fashion Stores Ltd. has filed for Chapter 11 bankruptcy protection, and announced plans to liquidate nearly all of its assets. In its filing, it noted that the “exact plan” for the future of the company is still being refined.



The Birmingham, Alabama-based urban fashion retailer, which caters mostly to African-American women, operates some 250 stores in 25 states.



Simply Fashion credited declining sales as one of the primary factors behind its filing. Other factors included the lingering effects of the recession. The company filed bankruptcy along with its general partner, Adinath Corp. The filing listed more than $24.7 million in debts



From 2012 to 2014, Simply Fashion shuttered about 120 unprofitable stores. Last year, it lost $9 million on $65 million in revenue.



Liquidators at Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC have struck an agreement to serve as the lead bidder at a bankruptcy auction, pending a judge’s approval.