Christopher & Banks files for bankruptcy, will close most, ‘if not all,’ stores
Jan. 14, 2021
Women’s retailer Christopher & Banks has filed for bankruptcy protection and expects to close “a significant portion, if not all, of its stores.” The three Sioux Falls locations have started liquidation sales.
The Twin Cities-based women’s clothing retailer has Christopher & Banks and the CJ Banks plus-size shop at The Empire Mall as well as a Christopher & Banks store at Dawley Farm Village. Merchandise is marked down 40 percent to 60 percent, and the stores are expected to close by the end of February, an employee said.
Liquidation sales also have started at stores in Yankton, Watertown, Aberdeen, Pierre and Rapid City. According to the company’s website, there are nearly 450 stores in the U.S., mostly in smaller markets.
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The company “is in active discussion with potential buyers for the sale of its e-commerce platform and related assets,” according to a news release issued Thursday.
Earlier this month, the publicly traded company disclosed several defaults on financial obligations, including key loans and the lease on its headquarters, according to a securities filing. It has been losing money for several years.
“Despite the tremendous advancements we have made in executing our strategic plan, due to the financial distress resulting from the pandemic and its ongoing impact, we elected to initiate this process and pursue a potential sale of the business in whole or in part to position the company for the future,” CEO and president Keri Jones said.
The business was founded in 1956 in Minneapolis. Brauns Fashions became a publicly traded company in 1992 and rebranded and Christopher & Banks in 2000.
Christopher & Banks’ bankruptcy filing is the first of the new year for a retailer with stores in Sioux Falls.
Last year’s filings included J.C. Penney; Pier 1 Imports; Tuesday Morning; Hertz; the parent companies of Gordmans, Chuck E. Cheese and Men’s Wearhouse; Pizza Hut franchisee NPC International; Guitar Center; Ascena Retail Group, which includes Ann Taylor, Loft, Lane Bryant, Justice, Catherines and other brands; and Francesca’s.
The city lost Pier 1, Gordmans, Catherines and Justice stores and its only dine-in Pizza Hut.
