Styles for Less, the latest casualty of casual teen retail’s demise, has filed for Chapter 11 bankruptcy.
On Monday, the California-based company filed for bankruptcy protection in the U.S. Bankruptcy Court, Central District of California and listed its assets and liabilities between $10 million and $50 million, Reuters reported. In its filing, the company indicated its biggest creditors, including wholesale suppliers Ambiance and Vivace.
The purveyor of teen apparel, which currently operates roughly 100 stores in the U.S., plans to reorganize its debt and is seeking a loan for the Chapter 11 process. Marc Winthrop, senior partner at law firm Winthrop Couchot Golubow Hollander LLP, told Reuters last week that Styles for Less has been closing stores for a while.
[Read more on teen retailer bankruptcies: Papaya Clothing Files for Chapter 11 Bankruptcy, Aims to Stay in Business]
Styles for Less joins other troubled teen retailers, including Papaya Clothing, Rue 21 and Wet Seal, which all filed for bankruptcy in the last year. These teen retailers, which had been prevalent throughout malls, outlets and strip centers in the U.S., all suffered from less foot traffic and declining sales, as consumer shopping habits shifted, fast fashion took hold and e-commerce continues to take market share.
Many of these teen retailers, including Styles for Less, had been late to the game in e-commerce, which left them largely behind in a world where more convenience, more tech and more seamless shopping wins out over everything. The teen retail market has depleted substantially in recent years, and those still trying to cater to the sector may have to fall in line with what other bigger brick-and-mortar retailers have been doing to draw attention and foot traffic, like launching collaborative lines with influencers or tapping into AI to offer personalized chats that help with shopping and garner loyalty.