Destination Maternity on Monday became the latest retailer to file a voluntary Chapter 11 petition for bankruptcy court protection.
The retailer of maternity apparel filed its petition in Delaware, listing total assets at just over $260 million and total debts at about $244 million.
Rumblings began circulating earlier this month that the Moorestown, N.J.-based company was likely going to file for bankruptcy before year end. And last month the debt-laden retailer hired a financial advisor to review strategic options. The company last year said it would shutter between 240 to 280 doors. It operated about 937 stores as of Aug. 3, the end of its second quarter.
The retailer’s performance in the second quarter showed both a slowdown at its brick-and-mortar stores and at its e-commerce site. For the quarter, Destination Maternity reported a net loss of $3.5 million on sales of $84.9 million.
Back in 2016, when consumers were already is the midst of shifting how they shop for apparel, the company–financially pressured even back then–had hoped for a merger with French firm Orchestra-Prémaman to create a global retailer of maternity apparel, childrens’ wear and baby hard goods. But that merger fell through a year later.
The nameplates under Destination Maternity’s umbrella include Motherhood Maternity, Pea in the Pod and Destination Maternity.
It plans to shutter 183 stores at the outset, and will be forced to liquidate if it can’t find a buyer during its tour of bankruptcy duty.