Destination Maternity announced it is closing more than a third of its stores and filing for Chapter 11 bankruptcy, adding to a long line of struggling retailers.
Destination Maternity is the parent company of Destination Maternity, Motherhood Maternity and A Pea in the Pod.
USA Today reported that company had 446 stores in the U.S., Canada and Puerto Rico as of early August. Destiny Maternity also operates shop-within-a-shop locations in department stores and baby specialty retailers.
Part of the bankruptcy filing includes closing 183 stores on top of the 27 that the company had already closed, according to USA Today.
“The decision is a difficult, but necessary one,” said Lisa Gavales, chairman of the office of the CEO of Destiny Maternity , in a press release. “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 the process we will be focused on developing the promising interest already shown by potential bidders, and maintaining operational momentum toward a stronger business.”
According to USA Today, the company blamed the retail industry’s turmoil, declining birth rates, high rents and leadership turnover for faltering. The company has had five CEOs in the past 5 years.
In its bankruptcy petition, Destination Maternity listed $260.2 million in assets and $244 million in debts, according to USA Today.
Destination Maternity is also filing for a customary first day motion that, once approved by the bankruptcy court, will let the company transition its business into Chapter 11, according to a press release.