Charming charlies clothing

Charming charlies clothing DEFAULT

Charming Charlie brand opens its first store after liquidating in 2019

Dive Brief:

  • The Charming Charlie brand opened a store in Atlanta last Friday, its first since the brand liquidated in bankruptcy last year.
  • After a planned physical store revival was delayed by the COVID-19 crisis, Charming Charlie plans to roll out more locations in late 2020 and early 2021, the company said in a press release.
  • The next store is set to open this Friday in Towson, Maryland, according to the company. On its website, Charming Charlie says it plans to open as many as 25 stores a year.

Dive Insight:

Charming Charlie just won't quit. Since its founding in 2004, by Charles Chanaratsopon, the retailer has been through two bankruptcies. The first bankruptcy left it with a smaller footprint by more than 100 stores and turned over ownership to the company's lenders. The second bankruptcy led to the full liquidation of the retailer's brick-and-mortar business.

Chanaratsopon regained control of the brand when a real estate firm he reportedly controlled bought up Charming Charlie's intellectual property in bankruptcy last year for more than $1 million. He told the Houston Chronicle a year ago that he planned to revive the retailer. 

Under Chanaratsopon, Charming Charlie built a brand and following in part on its color-coded approach to merchandising. At its largest, the company's footprint reached nearly 400 stores, but that started to shrink even before its first Chapter 11 filing in late 2017.

The arrangement of products by color might have added some charm to stores, but it also complicated the retailer's inventory management. As Charming Charlie's then-CFO would detail in court filings in its second bankruptcy in 2019, stores would often be left with unsold color-based merchandise, forcing it to discount it. 

Those hits to profits, along with expensive leases, unfavorable trade terms with suppliers, Trump Administration tariffs, severe weather events and other factors led to the ultimate decision to file again and liquidate. 

The retailer is not alone in finding a life after a bankruptcy wind down. Another apparel retailer that liquidated last year, Charlotte Russe, rapidly began rebuilding its physical footprint the same year after its IP was sold off. 

After Toys R Us bought and then closed down FAO Schwarz, whose New York City flagship was made famous by the Tom Hanks movie "Big," it returned to New York in late 2018 under new ownership. Toys R Us itself liquidated entirely in bankruptcy in 2018. Last year, it returned to brick-and-mortar with two new stores under a joint venture between the owners of the toy retailer's IP and b8ta. 

The value of retail brands can persist, if given the chance. That is much of the concept behind the business models of Authentic Brands Group, which has been a prolific purchaser of bankrupt retailers' IP, as well as Bluestem Brands, Marquee Brands and others.

The physical rebirth of a liquidated retailer is also a reminder that retail companies fail for all sorts of reasons, many of them financial and specific to circumstances — who owns them, who lends to them, who rents to them and so on. The death of a retailer does not necessarily mean it has no loyal customers left. 


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Charming Charlie going out of business, will close all 261 stores in Chapter 11 bankruptcy

Jewelry and accessories retailer Charming Charlie filed for Chapter 11 bankruptcy Thursday with plans to close all of its 261 stores in 38 states.

The filing marks the company's second Chapter 11 case, qualifying as what restructuring industry professionals call a "Chapter 22" bankruptcy.

Charming Charlie closed about 100 stores during its previous bankruptcy, which ended in April 2018. The retailer used that process to cut debts and slash other costs, but "these efforts simply were not sufficient to stabilize" the business and deliver profits, the company said Thursday in a court filing.

The company said it faced "unsustainable operating expenses, including onerous leases" at a time when many brick-and-mortar stores are battling with online retailers.

More than 7,000 store closings are already in the works or completed so far in 2019 across the retail sector, according to Coresight Research. (See the closures here.)

Charming Charlie sells handbags, clothing, and other accessories.

Going-out-of-business sales have already begun at Charming Charlie. The company expects to vacate its stores by Aug. 31, according to a court filing. Hilco Merchant Resources and SB360 Capital partners are handling the liquidation.

More store closings coming:An estimated 12,000 shops could close by the end of 2019

Similar trends have affected competitors such as mall chain Claire's, which filed for Chapter 11 bankruptcy protection in 2018.

Founded in 2004 by Charles Chanaratsopon, Charming Charlie sells jewelry, handbags, apparel, gifts and other items – with a particular emphasis on colorful products. The company had grown to more than 390 locations in the U.S., Canada, the Middle East and the Philippines by late 2017.

Texas, Florida and California together have about 75 Charming Charlie stores.

The company considered women ages 35 to 55 to be its "core customer base," chief financial officer Alvaro Bellon said in a court filing.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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Charming Charlie Makes a Comeback With First Store Since Liquidations

Charming Charlie has unveiled its first store since liquidating in bankruptcy last year.

The women’s apparel and accessories company announced this week that it has swung open the doors to a new location at the Cumberland Mall in Atlanta. The outpost — where clothing, shoes, jewelry, cosmetics and more items are grouped by color, as in past Charming Charlie units — officially welcomed in the public on Friday.

“We’re back solely because of our fans, and we’re exceptionally proud to be reopening at one of Charming Charlie’s original locations at the Cumberland Mall,” president Steve Lovell said in a statement. “With the opening of this new store, it’s important for us to express that our first priority is ensuring the health and safety of our associates and customers as we reopen. It’s at the heart of every decision we make.”


According to a press release, Charming Charlie plans to roll out additional stores in markets across the United States starting late this year through early 2021, as its originally scheduled plan to open in March was delayed by the COVID-19 health crisis.

It noted on its website that it expects to open as many as 25 stores a year. The next Charming Charlie opening is slated for Oct. 2 at Towson Town Center in Towson, Md.

Charming Charlie Holdings Inc. filed for bankruptcy in July, when it revealed plans to shut down its entire fleet of 261 locations across the country as well as halt online sales. In court documents, the retailer wrote that it had faced “significant headwinds, given the continued decline of the brick-and-mortar retail industry.”

That marked the company’s second bankruptcy filing in just two years: The Houston-based chain first filed for Chapter 11 protection in December 2017 at the height of digital disruption and the so-called retail apocalypse. Although it made its exit the following April, Charming Charlie’s go-forward plan, including the closures of 100 outposts, wasn’t enough to keep challenges at bay.

Last September, the business’ intellectual property sold for $1.125 million in an auction, according to documents filed with the U.S. Bankruptcy Court in the District of Delaware. Founder Charlie Chanaratsopon’s real estate investment firm, CJS Group LP, emerged as the winning bidder, and he promised to resurrect the struggling retailer.


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Charming Charlie Women's Hobo Handbag - Hang Chain Design, Braid


We believe the perfect accessory has the power to make you feel great about yourself, and a bright pop of color can absolutely transform you. We’re a place where you can celebrate your own style, find that perfect piece you’ve been looking for and discover irresistible, new treasures for yourself and your girlfriends.


Winner of several awards, Charming Charlie is recognized for leading a retail revolution with an awe-inspiring experience of carefully-curated collections, featuring breathtaking volumes of color and something special for every occasion.


From the big days to the everyday, Charming Charlie celebrates women and the colorful lives they lead. It’s a place where she can bond with her best friends, find unique fashion gifts and discover new treasures that surprise and delight.


A one-of-a-kind source of style known for offering a wide array of women’s apparel and fashion accessories, beauty, gifts and more, all ingeniously arranged by color; making that perfect look fun and easy to find.

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