We visited a Charlotte Russe store the day the retailer filed for bankruptcy

Advertisement
We visited a Charlotte Russe store the day the retailer filed for bankruptcy

Charlotte Russe

Business Insider/Mary Hanbury

Charlotte Russe has filed for bankruptcy.

Advertisement

  • Fashion brand Charlotte Russe has filed for bankruptcy and is closing 94 stores imminently.

  • The company has around 500 stores, most of which are located in malls.
  • We visited its only Manhattan location, which is one of the stores that is slated to close.

Charlotte Russe filed for bankruptcy early Monday morning.

The mall-based retailer, which is aimed at young female shoppers, currently operates around 500 stores. 94 of those will close imminently.

Read more: Charlotte Russe plans to close 94 stores as it files for bankruptcy - here's the full list

We visited Charlotte Russe's only Manhattan location, which is one of its planned closures:

Advertisement

Exclusive FREE Slide Deck: Future of Retail:AI by Business Insider Intelligence

{{}}

The store we visited was located in the busy Herald Square shopping area in New York City.

The store we visited was located in the busy Herald Square shopping area in New York City.

This store is located on the same block as low-cost rivals H&M and Old Navy.

As we approached the store, it became apparent why the store is struggling: the clothing in the window felt uninspiring.

As we approached the store, it became apparent why the store is struggling: the clothing in the window felt uninspiring.
Advertisement

While prices were cheap ...

While prices were cheap ...

... they were not cheap enough to keep up with the likes of online brands such as Fashion Nova and Boohoo, for example.

... they were not cheap enough to keep up with the likes of online brands such as Fashion Nova and Boohoo, for example.
Advertisement

These so-called ultra-fast-fashion stores are churning out cheap and trendy clothing.

These so-called ultra-fast-fashion stores are churning out cheap and trendy clothing.

Fashion Nova rolls out more than 1,000 new styles a week. Many of these new items are immediately uploaded to Instagram so that shoppers can see the latest trends quickly.

Online brands are putting pressure on stores such as Charlotte Russe that are simply not able to keep up the same pace.

Online brands are putting pressure on stores such as Charlotte Russe that are simply not able to keep up the same pace.

Fashion Nova has access to more than 1,000 manufacturers, so it can keep the supply chain fast.

Advertisement

Any unwanted clothing just ends up in the clearance racks, taking up valuable space in the store.

Any unwanted clothing just ends up in the clearance racks, taking up valuable space in the store.

These items didn't seem to be last season, however. There was a ton of plain apparel here.

While the liquidation sales hadn't started yet, there were still plenty of deals.

While the liquidation sales hadn't started yet, there were still plenty of deals.
Advertisement

Overall, the quality of the clothing didn't feel great.

Overall, the quality of the clothing didn't feel great.

And while the store was generally well-organized, the shopping experience didn't seem exciting enough to lure customers offline.

And while the store was generally well-organized, the shopping experience didn't seem exciting enough to lure customers offline.
Advertisement

Charlotte Russe has struggled for some time as its debt has mounted. Last year, it trimmed its debt load from $214 million to $90 million in a restructuring deal.

Charlotte Russe has struggled for some time as its debt has mounted. Last year, it trimmed its debt load from $214 million to $90 million in a restructuring deal.

Source: Retail Dive

It wasn't enough to stave off a bankruptcy, however.

It wasn't enough to stave off a bankruptcy, however.
Advertisement

Jenny Ming, Charlotte Russe's CEO, had an impressive resume before taking on the role in 2009.

Jenny Ming, Charlotte Russe's CEO, had an impressive resume before taking on the role in 2009.

She was one of the early employees at Old Navy and went on to become president of the brand. According to CNBC, under her management, the company grew to be a $6.7 billion business with 900 stores.

Old Navy is now one the most successful parts of Gap Inc.'s business.

It seems she hasn't had the same luck with Charlotte Russe.

It seems she hasn't had the same luck with Charlotte Russe.
Advertisement
Next StoryAmazon is reportedly taking over one of America's most infamous dead shopping malls