CWTRQ: BK Plan effective. All shares cancelled at 10:03 A.M. E.S.T.
It's called Restructuring. They're selling the things in stocks to pay the debts. Then, will emerge without debts.
CWTRQ, Running like AAMRQ. It was High as $3.97 in 2013. Delisted from NASDAQ in May. OS: 30 m (tiny). AAMRQ went to $0.1 after filing bk, then crawling back up slowly, then went to $12.5 in 2013.
CWTRQ, OS: just 30 m, while AAMRQ had 650 M OS.
Very possible! It was as High as $3.97 in 2013 and its OS are tiny: just 30 m. While AAMRQ and GGPQ had 500 + M OS.
We'll see. Just 2 cents!
Coldwater Creek gets OK to start liquidation
By Bloomberg News
on May 07, 2014 at 7:22 AM, updated May 07, 2014 at 7:43 AM
Coldwater Creek, the women's clothing retailer, won bankruptcy court approval of an agreement with liquidators Hilco Merchant Resources and Gordon Brothers Retail Partners to run going-out-of-business sales at its more than 370 stores starting May 8.
U.S. Bankruptcy Judge Brendan Linehan Shannon in Wilmington, Delaware, on Wednesday approved the store-closing deal after Hilco and Gordon won a 32-hour auction, pushed by another liquidator group to substantially improve the initial offer.
The auction "was a resounding success" resulting in a deal valued at $161 million and "exceeded the expectations of all parties," Jill Frizzley, a lawyer for the company, said at the hearing.
The company is the latest clothing retailer to fall victim to falling sales in the wake of the recession, with others including Loehmann's Holdings.
Hilco and Gordon guarantee a 128 percent return on costs of Coldwater's merchandise from the sales, based on a value of $90 million to $105 million, court papers show. The liquidators' original stalking-horse offer guaranteed a recovery of 97 percent.
Coldwater, founded 30 years ago as a catalog business, needed to begin the store closing sales before the May 11 Mother's Day holiday, a key selling period, to maximize recoveries.
The Sandpoint, Idaho-based company listed assets of $278.5 million and debt of $361.3 million in Chapter 11 papers filed April 11 when it sought bankruptcy protection with plans to liquidate the business.
Coldwater, which hasn't posted an annual profit since 2007, joined women's clothing chains Dots and Ashley Stewart Holdings and discount fashion retailer Loehmann's in bankruptcy after sales declined and losses mounted in the wake of the U.S. recession. Revenue peaked at $1.1 billion in 2006.
The retailer scrapped a plan to hold a separate auction for its intellectual property, including customer lists, deciding bids for virtually all the assets would produce the best deal.
Hilco and Gordon offered about $27 million for the IP and customer list and another $6 million in value, including $2 million for furniture, fixture and equipment
Coldwater Creek launches closing activities of stores, website
May 8, 2014 | By Katherine Boccaccio
Boston -- Gordon Brothers Group and Hilco Merchant Resources have, effective May 8, launched the total liquidation of Coldwater Creek brick-and-mortar stores and its website.
The joint-venture team is conducting closing sales at all Coldwater Creek stores and online, offering 30% to 50% off all items.
“We thank our many customers and dedicated employees for their tremendous loyalty over the years and are very proud of our associates’ commitment to maintaining our award-winning customer service and positive shopping experience we are known for throughout this transition,” said Jim Bell, CFO, Coldwater Creek.
The Sandpoint, Idaho-based women’s apparel chain will shutter all 365 stores across the U.S. It announced last month that it had filed a Chapter 11 voluntary reorganization petition and would wind-down all operations around the Mother’s Day timeframe.
The move wasn’t a big surprise, as Coldwater Creek had sought a potential buyer in late 2013 and had unsuccessfully tried to secure additional financing to deal with looming debt.
The closures deliver about 2.2 million sq. ft. of space back to the market.
they are divesting....it dosent look like a buyer is stepping forward
Let's close at $.10 today
Curious to know why the spike up on delisting day? I don't understand.
CWTR, Volumes: 30 M shares in 4 days between $0.22 - $0.47.
2014-04-04 Q CWTR 0.27 0.30 0.203 0.24 -0.0401 3,226,330 2,602 0.235 0.28
2014-04-03 Q CWTR 0.3649 0.369 0.2532 0.2801 -0.04 3,143,345 2,692 0.26 0.30
2014-04-02 Q CWTR 0.25 0.474 0.224 0.3201 0.0965 13,703,266 10,615 0.00 2.00
2014-04-01 Q CWTR 0.18 0.2443 0.172 0.2236 0.0546 5,924,930 4,451 0.21 0.24
Its all OS have been changed hands between $0.22-$0.47 in Apr 1 - Apr 4.
It might be going to 10's -20's.
If they don't go under this will be a big score.
Back over .50 for sure somethins up...
I expect a possible hail mary at the end.
Some may think because its Chapter 11 instead of 7, that there is still a glimmer of hope.
That's so sad. I feel terrible for the employees and community.
More recent news: Thank you. I have marked you also.
Posted: Saturday, April 12, 2014 10:00 am
By CAMERON RASMUSSON Staff writer
SANDPOINT — The once-bustling Coldwater Creek headquarters now feels more like a ghost town.
Employees arrived for work Friday morning and soon abandoned the campus in droves after learning the company had filed for Chapter 11 bankruptcy protection. With business proving increasingly unsustainable, Coldwater Creek officials plan to liquidate assets and pay off debts, which total $361 million, according to the bankruptcy filing. Eventually, the company will close all its physical and Internet-based stores.
“This all happened very quickly,” Coldwater Creek CEO Jill Dean said Friday. “It’s a devastating impact and not at all what we were expecting.”
For the more-than 300 individuals who worked at the Sandpoint corporate headquarters, the news didn’t come as a surprise, but that didn’t lessen the blow. It’s still unclear, Dean said, which employees will be held on to aid the liquidation process. Either way, they’ll all receive a minimum of 60 days salary. The company will also do whatever it can to help employees find new jobs, Dean said. They’ll even assist those who want to stay in Sandpoint, although that will be an easier process for some than it will be for others, she added.
“Our employees love living and working in this community, which makes this news today even harder for them,” Dean said.
“We’ll do everything we can to help our employees find employment and a soft landing,” she added.
Altogether, Coldwater Creek employed almost 500 people within Bonner and Kootenai counties. Most of these jobs were full-time positions with solid salaries and benefits. The loss was difficult to take for many, who found themselves gathering at bars and breweries for a consolatory drink. Most declined to comment on the closure, choosing to focus on more light-hearted matters.
“I grew up in this town, and for me, it’s just really sad we lost a company with such a strong local heritage,” said Jesseca Whalen, a Coldwater Creek copywriter.
Like many clothing retailers, Coldwater Creek was hit especially hard by the 2008 recession. As household budgets tightened, consumer spending simply didn’t keep up with most of Coldwater Creek’s price ranges. After failing to turn a profit for five years running and suffering a particularly brutal third quarter last year, Dean said it was clear drastic measures were needed to get the company back on the rails..
In October, officials announced they were pursuing strategic alternatives — either a sale or some other influx of capital — to stabilize business. Shortly after the announcement, the company cut 20 percent of its corporate workforce expenses. However, the efforts were in vain, Dean said.
“At times there were signs of progress, but ultimately, we couldn’t find a buyer,” she said.
Business improved in the fourth quarter of the fiscal year, Dean said. Nevertheless, it wasn’t enough to keep the company going.
“We believed we were on a good path, but unfortunately, we ran out of sources of capital and we ran out of time,” she said.
The company has secured $75 million in debtor-in-possession financing from Wells Fargo as stores begin to sell off inventory. When paired with early May sales dates — traditionally a strong time of sales for the company — officials foresee liquidation taking several months.
Finally, the process of shuttering storefronts and shutting down websites will begin.
The closure plans are a sad outcome for employees and community members alike, Dean said. Coldwater Creek defined itself over the years as a proudly local company even as it grew to global significance. In the process, the company supported numerous local nonprofits and organizations, including Panhandle Alliance for Education, the Festival at Sandpoint, the Lake Pend Oreille School District, the Sandpoint Backpack Program and more. Coldwater Creek’s loss leaves a hole in both employment and local activism that won’t be easy to fill.
“It’s been a horrific day here, but we’re proud of our community and our associates,” Dean said. “We’re just very sorry this is the end of our story.”
Wow! Thank you very much. I will give you a person mark.
Most recent is I do know that the company Lighthouse will be purchasing the admin CWTR Headquarters here (not the company) just the space. I will keep digging.
Any additional rumors floating around today? Just checking.
my wife use to buy a lot of clothes from them....they were a big chain
Surprise it stayed above .01
It was very fun on the bounce!!!! Looks like it's dead now.... At least on the surface, it might make for another dead cat bounce next week, but I think I'll avoid it like the plague!!!!
I hope all got out in time.... It was a fun play for a while.. the bounce play was great...
Yes they will close store... soon.
Sad for CWTR
Well the rumors where right... CWTR fills BK CH 11...
Coldwater Creek bankruptcy filing expected soon
Posted: Tuesday, April 8, 2014 10:00 am
By CAMERON RASMUSSON Staff writer | 9 comments
SANDPOINT — Uncertainty is rising and stock prices are falling at Coldwater Creek as business reporters and insiders are predicting the company will soon file for bankruptcy.
In an article published March 31, The Wall Street Journal reported that the Sandpoint-based women’s clothing retailer was preparing to file bankruptcy-court protection in light of its many financial struggles. The information originated from unnamed sources identified only as “people familiar with the matter.”
The questions only increased Monday when Bloomberg News published an article indicating officials are planning to liquidate its assets after a bankruptcy filing is complete. The news publication also attributed its information to unnamed sources.
Company officials have remained silent following the news reports, even when stock prices nose-dived as publications picked up the story. Stock value fell last Monday from around $0.80 per share to $0.16. Later in the week, it crept upward, nearing $0.40 Thursday before declining yet again. Prices finished out Monday sitting at $0.20.
Coldwater Creek employees said the reports have provoked a great deal of in-office anxiety and speculation. Either way, they anticipate having a clearer idea of the company’s plans by Wednesday.
Quiet corporate leadership isn’t the only thing the experts are finding worrisome. According to stock analyst Jeff Van Sinderen of B. Riley and Co., the company has not yet released Q4 earnings, which typically arrive toward the end of March. With company liquidity and cash flow a major problem and few options readily apparent for the company, B. Riley terminated its coverage of Coldwater Creek.
Too many underperforming and overhead-creating retail locations headed up Van Sinderen’s concerns in his final Coldwater Creek report. According to plans announced at the end of Q3, the company intended to close between 10 and 15 retail locations in the 2014 fiscal year. B. Riley analysts, on the other hand, saw the need for much more aggressive cost-cutting plans.
“In our opinion, there may be some value in the brand and direct business, but one way or another, the real estate issues need to be resolved,” Van Sinderen’s report states.
“Since the company has not completed a financial restructuring, at this juncture, closing stores would be facilitated under bankruptcy,” he later added.
In October, Coldwater Creek attempted to cut costs by reducing 20 percent of its corporate workforce expenses. The action occurred following an announcement that officials were exploring strategic alternatives, including the potential sale of the company. Based on the latest news reports, however, many believe strategic restructuring efforts failed to bear fruit.
Gonna start curling up on the daily. Looking better