Teen Fashion Chain Delia’s will File for Bankruptcy
After having falling sales for six quarters in a row, teen apparel retailer Delia’s has announced that it will be liquidating its assets and file for Chapter 11 bankruptcy “in the very near term.”
As of August 2 of this year, the company had assets of $75.6 million, but was carrying total liabilities of $37.6 million. The company hasn’t reported a quarterly profit since 2011.
The bankruptcy announcement came just a day after another teen fashion retailer, Deb Shops, announced it would be filing for its second bankruptcy.
Delia’s announcement completely destroyed their market value, losing 85% of their value in an instant plummet.
As of February 2014, the company had 499 and 1,190 part-time employees and 95 mall-based stores.
While the bankruptcy announcement might have destroyed Delia’s market value, filing for bankruptcy is actually one of the best decisions you can make if you’re being overwhelmed by debt.
As soon as you file for a Chapter 13 or Chapter 7 bankruptcy, your property is instantly protected from repossession, and creditors are no longer able to hound you with harassing phone calls. Bankruptcy gives you the time to align your debts into a manageable plan, or possible even wipe many of them away altogether.
You don’t have to be afraid of bankruptcy. It’s here to help you control your debt and get your finances back under control. Call us today to speak with a highly skilled bankruptcy attorney and see how we can help guide you on your way to financial freedom.