Charming Charlie LLC, the latest mall-based retailer to seek bankruptcy protection as online shopping reshapes the industry, believes it can survive its trip through chapter 11, the Wall Street Journal reported. The retail chain’s lawyers appeared yesterday before Judge Christopher Sontchi of the U.S. Bankruptcy Court in Wilmington, Del., upbeat about the chain’s prospects. “There’s a realistic opportunity for this company to rehabilitate itself and survive for many years to come,” said Joshua Sussberg, a Kirkland & Ellis LLP attorney representing Charming Charlie. Sussberg, an ABI "40 under 40" honoree, has represented other retailers under bankruptcy protection this year, including Gymboree Corp., BCBG Max Azria Inc., and most recently, Toys ’R Us Inc. Charming Charlie has reached a restructuring pact with its lenders and backers, which include private-equity firms TSG Consumer Partners and Hancock Park Associates, subject to court approval. The proposed deal calls for the elimination of debt in exchange for control of the company.
