The Limited files for Chapter 11 bankruptcy

It seems that apparel company Limited Stores, parent company of The Limited, has had a rough start this year. The women’s retailer filed for Chapter 11 bankruptcy recently in the United States Bankruptcy Court for the District of Delaware.

The company has been struggling for the past year financially. In November, The Limited revealed that it hard a hard time dealing with the decline in mall traffic. Guggenheim Securites was hired earlier to find a buyer for the company then, but The Limited had no luck. With all of the financial difficulties, the idea of a liquidation for the company came into questions. “Limited Stores is exploring a number of options that would provide the company with greater financial flexibility,” a spokesman for the company told WWD at the time.

The mall-chain also confirmed that it was shuttering many stores earlier this month. On January 6, the company released a statement disclosing that it closed down its 250 stores. The Limited had posted a message on its website stating these closures, but noting that the company’s clothing was still available through its e-commerce site. The closure of these stores showed the signs of financial strife that The Limited dealt with in the past year.

The Limited files for bankruptcy after shuttering all of its stores

Now the women’s apparel company has entered into an asset purchase agreement as part of its bankruptcy filing. The agreement includes private equity firm Sycamore Partners, who will help Limited Stores find a buyer to acquire the company including its intellectual property. Currently, Sycamore Partners has over 3.5 million billion in capital under management and focuses on retail and consumer investments.

The company’s first hearing took place today on January 18. The women’s apparel company just filed yesterday in court. According to the petition, the company’s assets estimated worth were between 10-50 million dollars. Liabilities for the company were also estimated to be between 100-500 million dollars. The company is attempting to sell its intellectual property for 25.8 million dollars. The sale is not yet approved in bankruptcy court and at the moment there are no stalking horse bidders.

Photo: The Limited