Deb Shops, the teen and plus size specialty retailer, filed its second bankruptcy in less than four years on Thursday, citing outdated stores and increased competition in the juniors’ and young women’s market as cause for its demise. Declining mall traffic also had negative effects on the mall-based retailer.
The company’s assets are estimated to be worth $90.5 million—half of which is inventory. Court documents report that its liabilities are approximately $120.1 million. The majority of the debt stems from Deb Shops’s deal to get out of its first bankruptcy, which was filed in 2011 when it was under ownership of Lee Equity Partners.
Deb Shops’ investors include Cerberus Capital Management, which owns about 70 percent of the operations, as well as Guggenheim Partners, Credit Suisse Securities USA LLC and Lee Equity Partners. The retailer’s company board has agreed to liquidate the chain, which operates 295 stores, if it cannot find a buyer.