Bel Air Charlotte Russe Store Slated For Closure: Report

BEL AIR, MD — Charlotte Russe, a women's clothing company seen in malls across the country, may not be in the Harford Mall for long. The company announced in a release Monday that it voluntarily filed for Chapter 11 bankruptcy protection in a federal bankruptcy court in Delaware.

As part of the plan, Charlotte Russe reported it would close about 94 stores.

The Bel Air location was one of them, according to CNBC.

Stores in Annapolis, Bel Air, Frederick, Gaithersburg, Hagerstown and Ocean City are among those that Charlotte Russe will shutter in Maryland, where it operates in 13 locations.

Here are the Charlotte Russe stores in Maryland (stores in bold are said to be slated for closure):

• Harford Mall, Bel Air
• Westfield Annapolis Mall, Annapolis
• The Mall in Columbia, Columbia
• Francis Scott Key Mall, Frederick
• Lakeforest Mall, Gaithersburg
• Valley Mall, Hagerstown
• Tanger Outlets, National Harbor
• Tanger Outlets, Ocean City
• The Centre at Salisbury, Salisbury
• Towson Town Center, Towson
• St. Charles Towne Center, Waldorf
• Westfield Wheaton, Wheaton
• White Marsh Mall, White Marsh

A spokeswoman for the company told The Wall Street Journal a going-concern sale is the retailer's preferred path through bankruptcy. The company will provide more details later about plans to close individual stores and closing sales.

Based in San Francisco, Charlotte Russe has received a commitment of up to $50 million in debtor-in-possession financing. If approved by the court, the money would be used to support the company's operations and administration during bankruptcy proceedings.

According to CNBC, the private equity firm Advent International bought Charlotte Russe in a $380 million deal. But the chain has struggled and had to strike a deal last year to reduce its debt by $124 million. According to The Wall Street Journal, Charlotte Russe saw sales plummet in the third quarter of 2018 by more than $35 million. Adjusted earnings fell by more than $8 million compared to the third quarter of 2017.

"The debtors suffered from a dramatic decrease in sales and in-store traffic, and their merchandising and marketing strategies failed to connect with their core demographic and outpace the rapidly evolving fashion trends that are fundamental to their success," Brian Cashman, the company's chief restructuring officer, reportedly said in court filing.

Charlotte Russe has about 500 stores across the U.S. It is the latest domino to fall in the industry, following major closure announcements by Sears and children's clothing retailer Gymboree.

Patch national staffer Dan Hampton contributed to this report.

File photo of Harford Mall by Elizabeth Janney.