Women’s apparel retailer Soft Surroundings last week filed for Chapter 11 bankruptcy and announced plans to close all 44 of its stores. The company’s remaining assets have been acquired by Coldwater Creek under the ownership of Newtimes Group, which plans to continue to sell Soft Surroundings’ apparel and accessories online and via catalogs. Soft Surroundings has secured $18 million in debtor-in-possession financing from liquidation consultancy Gordon Brothers to enable business continuity.
Total Retail’s Take: Soft Surroundings’ closed dozens of stores in recent years, reducing its physical footprint by 25 locations last year alone. “Over the past year, we’ve taken significant steps to fortify our financial standing including rightsizing our business to better match current market conditions,” commented Executive Chair Bridgit Lombard in a company press release. The brand continued to face pressures stemming from the strains placed on retailers during the COVID-19 pandemic, inflation and more.
Now, Coldwater Creek aims to turn Soft Surroundings into a direct-to-consumer e-commerce brand. The two lifestyle brands sell similar products to similar demographics, and although longtime business rivals, should be complementary going forward. “We’re welcoming this next step to financially secure a bright future for Soft Surroundings. This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners,” stated Lombard.
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