An employee at the store in New York City’s SoHo neighborhood said the stores were notified of the decision on Thursday.
Industry sources familiar with the plan said most stores are set to go dark by the end of October. A few will close as early as the end of September.
Daffy’s has been plagued by financial woes since the spring due to tanking sales, but it wasn’t until vendors were told in June that the chain was unable to pay May invoices that the cash crunch came to light.
Things were so bad that, at the end of June, buyers were told to take a forced vacation while the chain scrambled to assess its options. That led some in the markets to speculate that a bankruptcy filing could be in the works.
Marcia Wilson, the retailer’s chairman and chief executive officer, has been attempting to renegotiate terms with the firm’s lenders. She also was said to have considered a sale of the chain.
Like Syms and Filene’s Basement, both of which have gone out of business, Daffy’s succumbed to competition from business models that provide consumers with better deals and merchandise, instead of primarily offerings that were one season old.
The benefit to Wilson in a liquidation is that she has preserved her options for the real estate sites that the firm owns. In contrast, a bankruptcy filing likely would have meant a court would have control over those assets, depending on how ownership was structured and titled.
Daffy’s operates 19 units, eight of which are in Manhattan.
Etro’s show, titled “The Tree of Life,” was a celebration of the house’s 50th anniversary. “My father founded the company in 1968, which was the year of counterculture and psychedelia. It’s really a show that celebrates that and the paisley design of India and its origin,” said Veronica Etro. #wwdfashion #mfw #ss18 (📷: @delphineachard)
For @msgm’s spring 2018 show, creative director @massimogiorgetti said “Words, sounds, colors. Synthesis and therapy of a collection,” were the inspirations behind the collection, showing today. Read the rest of Milan spring 2018 inspirations on WWD.com. #mfw #wwdfashion #ss18
For her first solo album in over 10 years, Fergie tapped Carine Roitfeld, Mert and Marcus, Giovanni Bianco and more to create a fashion-focused video approach for the record, Double Dutchess. "Giovanni really helped me get back in touch with my tomboy side, my hardside," said the singer. #wwdeye #wwdfashion ( : @slovekinpics)
“Volumes and Graphic Art of the Nineties are the main inspirations of the new Aquilano.Rimondi SS 2018 collection,” said cocreative directors Tommaso Aquilano and Roberto Rimondi. #wwdfashion #mfw #ss18