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Teen clothing and accessories retailer Anchor Blue announced Tuesday that it filed for Chapter 11 bankruptcy protection again and has begun going-out-of-business sales at all 117 stores, including eight in Orange County.
Here’s an excerpt from the company statement:
Anchor Blue said that when it emerged from a restructuring in August 2009, the company worked to implement a series of initiatives to position the business for future growth, including introducing new merchandise, reducing overhead costs, launching a new store concept and bolstering its executive team. However, Anchor Blue has continued to face strong headwinds from product promotions and discounts offered by larger retailers and unusually disruptive weather conditions in Southern California where the majority of its stores are located. Additional capital was injected into the business in November 2010 to help Anchor Blue through the holiday season, but the company suffered severe sales declines in December which further eroded its financial position.
In Orange County, Anchor Blue has locations at Westfield MainPlace in Santa Ana, Laguna Hills Mall, Westminster Mall, Brea Mall, The Village at Orange, The Block at Orange, Anaheim Plaza and Buena Park Downtown.
The company, founded in 1972, said it “has requested full authority to pay employee wages and benefits on an uninterrupted basis through the end of the wind-down process.” It also said it will honor all gift cards, customer programs and customer returns of merchandise until Jan. 17.
Private investment firm Sun Capital Partners said in August 2009 that it took a controlling stake in Anchor Blue, which filed for Chapter 11 bankruptcy protection in May 2009.
