Posted on 01/14/2015 6:34:44 PM PST by 2ndDivisionVet
Just two days after it warned that it might file Chapter 11 bankruptcy, Body Central is shutting all of its stores and headquarters completely.
The chain’s 265 stores are running “aggressive promotional sales through Sunday,” Gardner Davis, an attorney representing the Jacksonville-based chain of clothing stores geared to young women and teens, said on Friday afternoon. It has stores in the The Avenues and Orange Park malls and River City Marketplace.
The company’s headquarters and warehouse closed Friday, he said.
“It’s tragic that the company’s 2,500 loyal employees are losing their jobs,” he said.
About 185 of those employees worked at the company’s headquarters on Powers Avenue. A few congregated in front of the tan brick building, talking and hugging before leaving Friday afternoon. Others, some tearful, carried bags or boxes of their belongings to their cars. Fewer than two dozen vehicles remained on the property around 3 p.m. as a Jacksonville Sheriff’s Office vehicle patrolled the nearly empty parking lot.
Several Body Central former employees declined to speak with the Times-Union.
The company announced an Assignment for the Benefit of Creditors Friday.
“That’s similar to a bankruptcy liquidation,” Davis said. “But it’s handled in State Court and it’s faster, less expensive and more flexible.”
The company has been in financial trouble for some time. It owed $18 million to secured noteholders, Davis said, and another $10 million to trade creditors. He said the company has been paying cash for merchandise because it had no credit.
“Unfortunately, investors could not be found to finance the reorganization as a smaller, more viable chain.”
The $18 million debt stems from an emergency loan it took out last summer.
It’s been a tough time for many stores that cater to young female customers, such as Body Central....
(Excerpt) Read more at jacksonville.com ...
Bad management. Poor bidness model = fail.
Yea, and apparently all the money from low fuel is being wasted on Zerocare.
When the hell are we going to get a break!
They’re into thrift wear. Kids are getting clothing from goodwill.
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