Teen apparel retailer dELiA's Inc. has filed for Chapter 11 bankruptcy protection and said it had hired advisers to help liquidate its assets.
The Manhattan-based company listed total assets of $74 million and liabilities of $32.2 million in its filing on Sunday with a U.S. Bankruptcy Court.
The chain has two Long Island stores, at Roosevelt Field and Smith Haven Mall.
The company also said chief executive Tracy Gardner and chief operating officer Brian Lex Austin-Gemas resigned on Friday.
The company said on Monday that Salus Capital Partners will give it a $20 million debtor-in-possession credit facility to continue operations, conduct store closings and closeout sales.
Several teen apparel retailers have been losing market share to fast-fashion brands such as H&M, Forever 21 and Inditex’s Zara, which bring the latest styles from the
runway to their stores within weeks.
They have also been losing out to online retailers such as Amazon.com Inc, who can afford to offer deeper discounts on apparel than those available at brick and-mortar stores.
The company had warned on Friday it was liquidating assets and would file for Chapter 11 bankruptcy protection "in the very near term, " sending its shares down 84 percent.
Teen and young women’s fashion chain Deb Shops, which is controlled by private equity firm Cerberus Capital Management, filed for its second bankruptcy in less than four years on Thursday and said it would seek a buyer.
Shares of dELiA's were down 0.0014, or 7.4 percent, at 0.0203 cents in trading on Monday morning.