Charming Charlies North Austin, Pflugerville Stores Could Close

AUSTIN, TX — Fashion accessories retailer Charming Charlie has filed for bankruptcy and has plans to close 100 stores by year end, possibly some in the Austin area.

The retailer cited dwindling cash balances in announcing the Chapter 11 bankruptcy filing earlier this week. The reorganization of debt could lead to store closures as the company faces difficulties securing adequate inventory for the upcoming holiday season, company officials explained.

"By reducing the size and scale of our operations, we have the opportunity to stabilize the business,” interim CEO Lana Krauter said in a prepared statement. “We also will be better equipped to read and react to trends and what our customers want, which had been the hallmark of our success.”

The potential closure of 100 stores represents about a quarter of all the company's sites. The company operates 370 stores in the U.S., four in Canada and 16 franchised locations in the Middle East and the Philippines. The Houston-based retailer employing about 1,000 full-time employees and another 4,600 part-time workers also plans to close its Los Angeles office and reduce the staff at its Houston corporate support center and distribution center, officials said.

The news release didn't list which stores might be closing. But given the announcement, several Austin-area stores are now in jeopardy of possible closing, including:

• A store at The Domain shopping center in North Austin at 3220 Feathergrass Court, Suite 112.
• The Pflugerville store at 1512 Stone Hill Dr.
• The Cedar Park store at the 1890 Ranch Shopping Center located at 1335 E. Whitestone Blvd.
• The Georgetown location at 1015 W. University Ave. nestled in the Wolf Ranch Town Center.
• A site in New Braunfels in the Town Center at Creekside shopping development, 227 Creekside Crossing.
• In Sunset Valley at the Sunset Valley Village shopping development, 5207 Brodie Lane, Suite 230.
• In Bee Cave, where the store at the Hill Country Galleria, 12701 Hill Country Blvd., Suite O120, is now listed as temporarily closed. It's unclear if that closure is related to the bankruptcy filing.

Founded in 2004, Charming Charlie sells jewelry, handbags, apparel and beauty products organized into color-coordinated store displays, Forbes described in a news story. Products typically ranging between $5 to $50 are intentionally in a so-called “sweet spot” between the price points at more expensive Macy’s and Kohl’s and lower-priced Claire’s, Robert Adamek, Charming Charlie senior vice president and chief financial officer, said in a court filing.

“The general shift from brick-and-mortar retail has been further exacerbated by merchandising miscalculations, lack of inventory, an overly broad vendor base, all of which has led to underperformance and reduced sales,” Adamek said in the filing.

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