SJC Inc., which operates Silver Jeans stores, filed for Chapter 11 bankruptcy protection last week, claiming that the stores have been suffering from the slow economy in the U.S. and fierce competition with other denim labels like Lucky Brand and True Religion.
The company plans to liquidate inventory and close five of its six Silver Jeans stores located across California, Texas and Illinois. Its store in the Mall of America in Bloomington, Minn. will be the only location to remain open because it has been sold to an affiliate. If the bankruptcy plan is approved, these locations will be closed by Aug. 31.
The Silver Jeans brand itself is unaffected by the bankruptcy and will continue to be sold at retailers like Macy’s, Dillard’s, Buckle and Maurices.
Just last year SJC announced a plan to open 30 more stores over the course of five years. It also hoped to utilize an omnichannel retailing strategy to bring together their online and in-store sales. Part of the store’s tech-driven makeover included mobile point-of-sale systems instead of typical cash register stations and video walls constructed to displaying music videos and Silver Jeans advertisements.
Court documents showed these stores were never profitable with operating losses predicted to exceed $2.8 million.