LIDS FILES CHAPTER 11
NEW YORK — Hat retailer Lids Corp. filed for Chapter 11 bankruptcy court protection last week in Delaware.
The Westwood, Mass.-based hat and cap retailer employs 2,700 nationally and has 388 stores, predominantly located in malls, in 47 states. Nancy Babine Kucinski took over as chief executive officer following Jack B. Chadsey’s resignation on Thursday. No other details are available.
Annual sales are reportedly $120 million, with about 10 million caps sold each year.
The privately held company was founded in 1992 by two college students, the company’s Web site said.
According to a credit source, the company ran into financial difficulty when sales started slowing at certain mall stores. The company’s Web site said the firm still plans on adding 75 to 100 new stores yearly, but the source indicated many sites are likely to be closed before any store expansion is undertaken.