Solstice Marketing Concepts has filed for Chapter 11 bankruptcy protection.
The company, which described itself as the second-largest retailer of sunglasses in the U.S., said it plans to reorganize and emerge from bankruptcy as a going concern. Solstice operates 66 stores along with an e-commerce site.
The retailer reported that its retail store business has been significantly impacted by COVID-19. As a result of mandatory store closures in key markets and stay-at-home orders throughout the country, Solstice’s retail sales during the pandemic have been more than 50% lower than 2019 with limited relief to compensate for stores being closed and shoppers afraid or unable to shop.
Solstice is seeking financing upon bankruptcy court approval to fund ongoing operations during the restructuring process.
"We are optimistic about reorganization as we continue to see increasing business in our stores as COVID restrictions are lifted and in the new fashions that our vendors are providing,” stated Solstice’s CEO, Mikey Rosenberg. “We are now dedicating ourselves to the necessary changes to our business and the restructure of our obligations for the benefit of our employees, critical suppliers and other stakeholders. “
The company has retained Morgan, Lewis & Bockius L.L.P. as its legal counsel, RCS Real Estate Advisors to advise on all store leases, and KCP Advisory Group LLC’s Jacen Dinoff as chief restructuring officer.