- Angela Gonzalez-Rodriguez |
Womenswear chain The Limited started reducing its headquarters’ staff on Tuesday, getting the industry talking about a likely sale of the business. The company, founded in the early 1960s, might shut down its corporate offices in New Albany entirely amid a slump in sales and debt pressures.
Earlier this month, the women's fashion retailer notified employees at its headquarters that it is running out of capital and that its business will likely be shut down unless a buyer can be found. In a letter to the employees, the privately held company said its results for the most recent quarter were disappointing.
"As you know, product misses and massive shifts in retail shopping trends have been especially difficult for the company's business, and the company is dealing with significant debt obligations," wrote Larry Fultz, an executive vice president and chief operating officer.
The Límites reportes to be mulling a sale as a lifeline
Regarding the future, the communication explained that the company’s executives "have now determined that the combination of sales misses and the level of existing financial obligations will require that the company be sold or we will have to wind down our operations due to an anticipated lack of operating capital."
‘Costar’ reported that the news emerged after the company filed a notice with the state of Ohio that it is planning a mass layoff and possible shutdown of its headquarters at 7775 Walton Parkway in New Albany, Ohio.
Market sources quotes by the ‘Columbus Dispatch’ highlighted that the date selected by the company to carry out this layoff is odd, as the key holiday season is already in full swing. "To not even be able to wait a month is pretty drastic," said these sources, adding that "They must be under a lot of pressure from the debt."
The future of the retailer’s commercial network remains uncertain as the notice didn’t indicate what will happen with the chain's 250 stores.
Sun Capital Partners has owned the chain since 2007, when the private-equity firm bought the chain from L Brands. Last month, the owners said they were exploring a sale of the chain.