Styles for Less, a teen apparel store based in another state, recently filed for bankruptcy. The Chapter 11 bankruptcy filing was executed in an effort to keep the business afloat at a time when many retailers are struggling financially. Internet commerce is being blamed for the decline in business of many retailers throughout the United States, including in Massachusetts.
Styles for Less reported having assets totaling between $10 million and $50 million. Its liabilities are reportedly in the same range. It is anticipated that the company will strive to get rid of its debt and come out of bankruptcy as a stronger, healthier business.
The apparel business currently has 93 stores as well as more than 600 employees in multiple states. In its recent court filing, the business claimed that several factors contributed to its bankruptcy filing, including the increase of fast-fashion competition, industry discounting and online threats. The company reported that it had already shut down 55 stores and laid off more than 300 workers. It had also already trimmed salaries and cut expenses in an effort to survive. Other retailers that have been struggling lately include Payless, True Religion and Rue21.
Sometimes industry and economic conditions prevent businesses in Massachusetts and elsewhere from being able to survive, let alone thrive. In these situations, filing for Chapter 11 bankruptcy may be an unavoidable option. This type of bankruptcy filing makes it possible for businesses to restructure themselves and reclaim control over their debt so that they can continue to operate more strongly than ever in the years ahead.
Source: usatoday.com, “Bankruptcy: Styles for Less files for Chapter 11 protection,” Nathan Bomey, Nov. 7, 2017