One of the world’s largest designer and retailer of maternity apparel, Destination Maternity announced to close down 183 stores– nearly 20 percent of its North American presence.
After filing for a voluntary Chapter 11 petition for bankruptcy court protection on 21 October, 2019.
The closures will upset the company’s namesake Destination Maternity stores as well as its other brands, Motherhood Maternity and A Pea in the Pod.
“A challenging retail environment required the company to ‘make some very tough choices,’” said Lisa Gavales, chair of the office of the CEO.
Stores across 39 states and 12 Canadian cities that the company expects to shut down as part of its restructuring. States hit the toughest include California, which will see 27 locations shut their doors, Florida 16, and Texas 15.
The New Jersey-based company’s stock is down a staggering 93%, currently trading at around 20 cents per share.
Destination Maternity now operates 937 retail locations across the United States, Puerto Rico and Canada, including 446 standalone stores and 491 leased department store locations. Open locations will continue to operate as normal throughout the bankruptcy proceedings.