Home accessories cataloger/retailer Chiasso filed for federal bankruptcy protection on Jan. 7. But while CEO David Marshall will close 10 of the company’s 14 stores, he doesn’t plan to curtail the Chicago-based company’s catalog and Internet operations.
“Of the 10 stores we are closing, eight are profitable,” Marshall says. But the weak economy, which resulted in two years of declining holiday sales, also hampered Chiasso’s expansion plans and has made it too costly to maintain stores in geographically dispersed locations. Chiasso will continue to operate stores in Chicago; Boston; Tyson Corners, VA; and Troy, MI.
“Our goal is to keep the ‘best of the best’ retail locations and funnel the executive team’s energy on catalog and Internet sales,” Marshall says. The direct division accounts for about half of Chiasso’s revenue. Ironically, Chiasso began as a retail company; its catalog division is less than four years old.