Count another casualty in the fashion sector.
Love Culture, which sells affordable apparel and accessories for women 18 to 35 under the Love Culture brand and somewhat more upscale clothing as Boutique Culture, has filed for Chapter 11 Bankruptcy in New Jersey.
Founded in 2007 by former Forever 21 executives, the chain grew quickly (probably too quickly) and now has more than 80 stores in 26 states. The company is likely to pursue a sale, possibly to another retailer, and will “close underperforming stores” according to Bloomberg News.
Love Culture is the latest apparel chain to file for protection, joining Coldwater Creek, Dots, Loehmann's and Ashley Stewart. American Apparel risked a filing earlier this month after missing a debt repayment until investment firm Standard General took control, reports the New York Post.
In Love Culture's case, slowing sales, combined with overexpansion and heavy technology investment, proved unsupportable. But interest from other investors could keep the chain going. (After all, an investor group including Dippin Dots owner and CNBC “The Profit” Host Marcus Lemonis is trying to rescue Crumbs, which closed suddenly last week.)
Still, what does an affordable fashion retailer have to do these days to stay alive?
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