Women’s clothing retailer Avenue will close its 222 brick-and-mortar stores by the end of September, the company announced Friday.
Avenue will also pursue the sale of its e-commerce unit, which generates 36 percent of the company’s sales, according to President and Chief Financial Officer David Rhoads.
Rhoads cites a decline in store traffic, unfavorable real estate obligations, high labor costs, and growth in competition as reasons for the store’s struggles.
“At the same time, Avenue.com accounts for roughly one-third of Avenue’s business with a strong and growing revenue base that has continued to enjoy solid margins and profitability, making it clear that a shift to an e-commerce-only business model is the most viable way to continue serving Avenue’s loyal customers, whose needs for fit, fashion and value we hope to continue serving for years to come,” Rhoads said in a statement.
Avenue.com, Cloudwalkers.com, and Loralette.com, will continue to operate while a buyer is sought.
Avenue is headquartered in Rochelle Park and owned by Philadelphia private equity firm Versa Capital Management LLC.
