Peek…Aren’t You Curious, the San Francisco-based children’s wear retailer, has filed for Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California.
The company said in its filing, which was made Feb. 5, that it will have funds to distribute to creditors, which number upward of 200. Peek’s estimated assets are listed as being between $1 million and $10 million, the same amount as its estimated liabilities.
Nordstrom acquired a minority stake in the company in 2010, promising to make Peek merchandise a major part of the core offering in all Nordstrom kids’ departments. Pete Nordstrom, copresident, was enthusiastic about potentially opening freestanding Peek stores. The brand was recommended to Nordstrom by Maureen Chiquet, former chief executive officer of Chanel.
Related Galleries
Peek initially bowed in 18 full-line Nordstrom units, eight with branded shops-in-shop. At the time it was operating six of its own stores in the west and southwest and an e-commerce site, as well as about 100 wholesale accounts, including Barneys New York. The company at last count operated 21 stores in 10 states.
Although Peek was generating more than $28 million in annual revenues, it experienced operating losses of $5 million to $6 million over the last two years. Peek looked into different ways of addressing its financial situation. When they proved unsuccessful, Peek approached Nordstrom about buying the company, since the retailer is an investor, the brand’s largest customer and sits on its board. Nordstrom considered the proposal, but ultimately declined.
“We plan to carry the line as a foundational brand for kids in our stores and online and we are happy they will continue as a brand through this chapter 11 reorganization,” Nordstrom said in a statement.
Peek plans to sell through the Chapter 11 proceedings 10 retail locations and related design and production assets to Charlotte Russe or another entity that might submit a higher and better offer.
Some of Peek’s high-profile locations include Westfield UTC in San Diego; Scottsdale Fashion Square; Bellevue Square in Bellevue, Wash.; Houston Galleria; Oakbrook Shopping Center, Oakbrook, Ill.; The Shops at Merrick Park, Coral Gables; Phipps Plaza, Atlanta; The Woodlands, Woodlands, Tex.; The Mall of America, Bloomington, Minn., and The Aventura Mall in Aventura, Fla.
Peek applied to the court to have Gordon Brothers named as its liquidation agent and DJM Realty Services as real estate consultant.
The company was started in 2006 by Tina Canales and two associates when she couldn’t find the type of children’s clothing she wanted her own kids to wear.