Fast-fashion retailer Charlotte Russe Holdings Corp. filed for chapter 11 bankruptcy on Sunday and plans to close about 20 percent of its stores but said it could liquidate the business entirely if it is unable to sell the business as a going concern, WSJ Pro Bankruptcy reported. The mall-based retailer, which operates the Charlotte Russe and Peek Kids chains, said its stores and websites will remain open but it will use the bankruptcy proceedings to immediately begin winding down 94 of its more than 500 locations. Charlotte Russe’s advisers are proposing two paths in chapter 11 as the future of the retailer hangs in the balance. The company is hoping a buyer will come forward to purchase at least a “material portion” of its business out of bankruptcy but could begin liquidating if it can’t come up with a deal in the next couple of weeks, according to court papers filed in the U.S. Bankruptcy Court in Wilmington, Del.
