Body Central is closing its chain of 265 clothing stores Sunday and is terminating 2,500 employees, the company said on Friday, marking the latest blow to the women's retail sector, Dow Jones Daily Bankruptcy Review reported today. The Jacksonville, Fla.-based company will liquidate through a state-court procedure called an "assignment for the benefit of creditors," which puts the company into the hands of an adviser who will work to pay off its debts. The company had hoped to restructure through a chapter 11 bankruptcy proceeding, according to its bankruptcy lawyer, Gardner Davis, but switched course "when the financing didn't materialize."
