Charlotte Russe announces talks with potential going-concern bidders

By Caroline Salls

Pittsburgh, Feb. 19 – Charlotte Russe Holdings Corp. announced Tuesday that it is in discussions with prospective bidders for a going-concern sale of the company to continue its brick-and-mortar and online platforms.

According to a news release, the company will simultaneously seek the approval of the U.S. Bankruptcy Court for the District of Delaware for a stalking horse liquidation agreement with a contractual joint venture comprised of Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC on Feb. 20 in compliance with its post-bankruptcy financing milestones.

Charlotte Russe said it remains in active discussions with prospective bidders to complete a going-concern sale of the business to avoid the liquidation of substantially all of its assets, and the company expects that competing bids will be due by March 3 and an auction will be scheduled for March 5.

If a going-concern transaction is not selected as the highest or otherwise best bid following the conclusion of the auction, the company will facilitate a wind-down of all of its store locations and operations beginning on or about March 7, the release said.

Cooley LLP is serving as the company’s legal counsel, Berkeley Research Group is serving as its financial adviser, and Guggenheim Securities, LLC is serving as its investment banker.

Charlotte Russe is a San Diego-based women's apparel company. The company filed bankruptcy on Feb. 3 under Chapter 11 case number 19-10210.

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