The Limited Clothing Retailer Reportedly Plans to File for Chapter 11 Bankruptcy

by San Antonio Attorney

The Limited will be the first clothing company to declare bankruptcy this year.

The retailer intends to file for Chapter 11 bankruptcy soon, according to reports.  The chain has 240 stores and has been suffering because of decreasing traffic at a number of shopping malls and a glut of goods on the market.

According to reports, the women’s clothing company said in December 2016 that it was considering several options that would allow the company to become more flexible financially.

The Limited has retained the services of financial advisors to help with any sale of assets and debt restructuring, according to news reports.

Just like Ann Taylor, Chico’s and other women’s clothing retailers, The Limited has been fraught with changes in consumer interest and behaviors, increasing rivals in addition to longer store leases.  Recently, Ascena Retail announced that the sales of its subsidiary company Ann Taylor has went down 11%.

Limited Stores, which started in 1963 in Ohio, was an offshoot from Victoria’s Secret main company L Brands in 2007 in a takeover by Sun Capital Partners, a private-equity firm.  In 2010, L Brands, called Limited Brands up until 2013, shed its 25 percent share to Sun Capital for about $32 million.

Many mall-based stores have suffered in 2016.  Among those that filed for bankruptcy are The Sports Authority, American Apparel, Pacific Sun and Aéropostale.

If you find it onerous to pay back your debt, you probably want to find out if you can wipe out your debt through bankruptcy.  Talk to a San Antonio Chapter 7 Attorney to know if you are eligible to discharge your debt.

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