Charlotte Russe Bankruptcy Update: All Stores Will Close Leaving Thousands Unemployed

Just days after clothing brand Gap announced they will be closing 230 of its stores over the next two years, Charlotte Russe, popular for selling women’s clothing and shoes, revealed this week that they will be starting liquidation and closing all of their stores, meaning thousands of its employees will soon be without a job.

“We are partnering with the buyer and remain in talks to sell the (intellectual property), are optimistic about the future of the brand, and remain in ongoing negotiations with a buyer who has expressed interest in a continued brick and mortar presence to continue to serve our loyal customers in the future,” the fashion retailer said in a statement to USA TODAY.

In February, signs pointing to Charlotte Russe being in financial trouble where they after the company filed for Chapter 11 bankruptcy. At the time, their plan, according to Business Insider, was to close 94 out of an estimated 500 stores in the U.S. and work with a buyer who would keep them in business. Now, the company's over 8,700 employees will face unemployment come April.

But the new plan is to close all of their stores, most of which are located in malls, over the next two months. A bankruptcy court in Delaware approved of the sale of Charlotte Russe's $160 million worth of inventory and other assets to liquidator SB360 Capital Partners.

The Charlotte Russe online store is no longer available. SB360 Capital Partners, which specializes in conducting store closings and going out of business sales, stated Charlotte Russe would start liquidation sales at all stores beginning Thursday.