Destination Maternity files for bankruptcy
‘The New Retail’ author Michael Zakkour discusses his outlook for retail in the run-up to Christmas.
Destination Maternity filed for Chapter 11 bankruptcy protection on Monday.
“This decision is a difficult, but necessary one,” said Lisa Gavales, chair of the office of the CEO of Destination Maternity. “In a challenging retail environment, we have had to make some very tough choices, but we are confident that the steps taken today provide an opportunity to continue a marketing process that provides the most efficient means of maximizing value to our stakeholders. Throughout this process we will be focused on developing the promising interest already shown by potential bidders, and maintaining operational momentum toward a stronger business.”
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The company is working with legal adviser Kirkland & Ellis LLP and restructuring adviser Berkeley Research Group throughout the bankruptcy process.
Destination Maternity, A Pea in the Pod and Motherhood Maternity stores will continue to operate through the bankruptcy proceeding. The company operates 937 retail locations including 446 stories in the U.S., Canada and Puerto Rico. It also operates 491 leased departments within stores like Macy's and Boscov's.