Bankrupt Charming Charlie Holdings Inc. plans to file its Plan of Reorganization within 10 days and exit bankruptcy proceedings in 95 days.Robert Adamek, senior vice president and chief financial officer, disclosed that timetable in a “declaration” filed with the bankruptcy court.The company filed its voluntary Chapter 11 petition for bankruptcy court protection Monday in Delaware. The company estimated assets at between $50 million to $100 million, and liabilities of between $100 million to $500 million. The three top unsecured creditors — all trade claims — were: Tycoon Int’l, New York, N.Y., $1,006,547; E.l.f. Cosmetics Inc., Chicago, Ill., $986,886, and Berkshire Fashions Inc., New York, N.Y., $974,541.According to Adamek’s court document, the company will pursue a debt-for-equity conversion, which also contemplates a new $35 million revolving credit facility and a new $50 million secured term loan. That would help deleverage the business by more than $100 million. The company would also consider a sale of its assets.Adamek also confirmed the closure of 100 stores. The plan is to keep about 276 go-forward stores, consisting of 132 lifestyle centers, 85 shopping malls, 53 power centers, 2 street stores and 4 outlets. Also on the agenda for closure is its Los Angeles office. The company also plans a reduction in head count at its Houston Corporate Support Center and Distribution Center. It employed about 5,665 employees — 1,065 full timers and 4,600 part timers — at the time it filed it petition.Founded in 2004 by Charles Chanaratsopon, the company over the years expanded to more than 390 locations across the U.S., Canada, the Middle East and the Philippines, with sales growing to over $400 million. Its primary footprint is centered in California, Florida and Texas. The business’ core consumer is a woman between ages 35 and 55. High-spending consumers on average shop three times a year at $89.43 per visit, and represent 38 percent of its customer base. Low spenders visit twice a year and spend between $30 and $71.64 per visit.Chanaratsopon and his family still own 70 percent of the interest in the company. Hancock Park Capital holds a 26.5 percent stake, while various individuals and investment firms own the remaining 3.5 percent. Chanaratsopon continues as a board member, but relinquished the chief executive officer role on Oct. 27. He was succeeded by Lana Krauter as interim ceo.While Adamek said adverse macro-trends hurt the business, he also acknowledged certain missteps that contributed to operational shortfalls, such as merchandising miscalculations. The court document also noted that merchandise is offered in as many as 26 different hues, although that approach also eventually caused the retailer to be saddled with excess merchandise in underperforming color offerings. The most popular category is jewelry, which historically has boosted company-wide margins above 60 percent. Also hurting the company was a failed attempt in 2014 to redefine the brand, which had included the elimination of key styles and product categories.The chief financial officer said that consolidated net revenue has declined over 22 percent and EBITDA has fallen over 75 percent “over the last several fiscal years.”Adamek also said the company “has been operating without sufficient liquidity throughout the fall of 2017.” Current cash balances are less than $1 million, and the retailer has only about $1.8 million of availability under its revolving credit facility, according to the court document.The company’s Back-to-Basics plan to restructure the business provides for the streamlining of its operational model, including working with vendors to shorten the period from product concept to in-store stocking.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews