Charming Charlie Poised To Close Maryland Store

ANNAPOLIS, MD — After filing for Chapter 11 bankruptcy Monday, the women's accessories and handbag chain Charming Charlie has requested court permission to close an underperforming store in Maryland. The store located in Annapolis Mall would remain open for the remainder of the holiday season.

In a press release Monday, the Houston-based retailer announced it was filing for Chapter 11 bankruptcy "in continuation of its efforts to stabilize the business." Executives at Charming Charlie said in the release that it "expects to operate the majority of its stores and its website as usual" and "intends to move forward with previously announced plans to close underperforming locations."

In total, the company is seeking approval to shutter 97 of its stores throughout the U.S., Chicago Tribune reports. Once the Annapolis location closes, five more Charming Charlie stores would remain open in the state. Those slated to stay in business are located in: Bowie, Frederick, Gaithersburg, National Harbor and Waldorf.

Regarding the massive restructuring, interim CEO Lana Krautner said in the news release, "We are confident that by reducing the size and scale of our business, we can focus on the core strengths that make the company succesful."

According to the press release, the retail chain has entered a debtor-in-possession (DIP) asset-backed loan agreement with its lenders for $35 million and has reached an agreement for new-money DIP financing in the amount of $20 million from most of its lenders.

Krautner thanked Charming Charlie's vendors and staff in the release, saying, "the goal is to move through this process quickly and emerge a stronger, more focused organization."

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