Privately-held Styles for Less (DBA Styles) files for Chapter 11 protection with the U.S. Bankruptcy Court in the Central District of California, case number 17-14396.The Company, which is headquartered in Anaheim, California, is represented by Marc J. Winthrop of Winthrop Couchot Golubow Hollander.
Styles for Less was founded in 1992 by Michael P. DeAngelo and today, August DeAngelo is chief financial officer. The Company has 93 retail women’s clothing stores throughout California, Nevada, Arizona, Texas and Florida and employs over 613 people at the store and corporate levels.
In documents filed with the Court, DeAngelo asserts: “Styles has experienced financial difficulties over the last couple of years. These difficulties are due to a combination of factors, including increased industry discounting, online penetration, and shifts in consumer spending away from ‘fast fashion’ and toward services and experiences. These changes have created a highly competitive retail environment and accelerated adverse trends in shopping habits. The result has placed severe pressure on the Debtor’s cash flow, depriving the Debtor of the ability to timely pay obligations to its Landlords and vendors, resulting in lawsuits and numerous threats from creditors.”
DeAngelo goes on to say, “Unfortunately, in light of the significant amount of debt that has amassed, the Debtor’s cost reducing efforts alone are not sufficient to reorganize without bankruptcy protection.”
Styles for Less lists estimated liabilities at $10 million to $50 million, and indicates pre-petition assets at $10 million to $50 million.
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