Charlotte Russe Closing All Stores; Diesel USA Files for Bankruptcy - NECN
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Charlotte Russe Closing All Stores; Diesel USA Files for Bankruptcy

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    Charlotte Russe Closing All Stores; Diesel USA Files for Bankruptcy
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    Charlotte Russe (left), Diesel USA (right).

    There's more bad news for the retail industry.

    Women's fast-fashion retailer Charlotte Russe announced Thursday that it is going out of business and closing its remaining 416 stores. 

    The liquidation sales begin Thursday in all stores nationwide. Customers can expect deep discounts on tops, jeans, jackets, dresses, shoes and accessories. Gift cards can be redeemed until March 21, 2019, though the sale is expected to wrap up quickly.

    California-based Charlotte Russe first filed for Chapter 11 early last month. 

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    In a press release, the company, which was founded in 1975, said sales reached their peak in 2016 at $986 million.

    In 2009, private equity firm Advent International bought Charlotte Russe in a $380 million deal. The mall-based apparel brand has since struggled as it tried to downsize its debt load, CNBC reported.

    Meanwhile, denim brand Diesel USA filed for Chapter 11 bankruptcy on Tuesday, citing online shopping and expensive store leases as contributing factors to its downturn. 

    Unlike Charlotte Russe, Diesel USA has no plans to close all stores, according to a court filing by chief restructuring officer Mark Samson. 

    Instead, it intends to exit some of its 28 stores, where landlords’ refusal to offer lease concessions has led to heavy losses, CNBC reported.

    With an uptick in jean sales across the market overall, Diesel USA hopes to focus on their more profitable stores and improve its product lines going forward. 

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    Levi Strauss & Co, which invented blue jeans in 1873, said last month that it plans to return to the U.S. stock market after a 34-year hiatus, through an initial public offering.

    Several other retailers have gone bankrupt in recent years as more consumers turn to online shopping.

    Last month, shoe chain Payless, filed for bankruptcy and said it will close its roughly 2,500 stores.

    Other stores that have announced closures include Victoria's Secret, Gap, J.C. Penney, Gymboree and Sears.  

    There have been more than 4,300 closures so far this year, CNBC reported, citing a Coresight Research note. The pace has been faster than the same period a year ago. 

    --Maria Chamberlain contributed to this story