In another sign of the changing times in retailing, Coldwater Creek is now undergoing a liquidation sale of its remaining merchandise and will soon be closing all of its stores. Coldwater Creek was honored by Chain Store Age in 1997 as its high-performing retailer of the year, based on a variety of criteria — including profitability and growth.
“On April 11, 2014, Coldwater Creek filed for bankruptcy in order to facilitate an orderly wind-down of our operations. On May 6, 2014, the Bankruptcy Court entered an order setting June 13, 2014 as the deadline for creditors of Coldwater Creek to file claims in our bankruptcy case. Holders of unredeemed gift cards and merchandise credits MUST file a claim in the bankruptcy case to receive a recovery. If you have a claim against Coldwater Creek and you do not file a claim, your claim will be cancelled and you will not receive a distribution.”
“We want to express to you, our valued customers what a difficult and painful decision this was for everyone involved in our company. Unfortunately, this decision came only after we made every effort possible to sustain Coldwater Creek as a viable business. On behalf of all of us at Coldwater Creek, it has been a privilege to serve you, and it is with deepest gratitude that we thank you for your loyalty and your business over the past 30 years.
What happened to Coldwater Creek? As recently reported by Bloomberg Business:
“The company is the latest clothing retailer to fall victim to falling sales in the wake of the recession, with others including Loehmann’s Holdings. Coldwater, founded 30 years ago as a catalog business, needed to begin the store closing sales before the May 11 Mother’s Day holiday, a key selling period, to maximize recoveries. The Sandpoint, Idaho-based company listed assets of $278.5 million and debt of $361.3 million in Chapter 11 papers filed April 11 when it sought bankruptcy protection with plans to liquidate the business.”
“Coldwater, which hasn’t posted an annual profit since 2007, joined women’s clothing chains Dots and Ashley Stewart Holdings and discount fashion retailer Loehmann’s in bankruptcy after sales declined and losses mounted in the wake of the U.S. recession. Revenue peaked at $1.1 billion in 2006.”