Destination Maternity Corp. said it and certain of its subsidiaries filed voluntary for Chapter 11 bankruptcy protection on Monday.
According to the bankruptcy filing, the Moorestown-based maternity wear retailer has $244 million of debt and $260 million in assets.
“This decision is a difficult, but necessary one,” said Lisa Gavales, Destination Maternity chair of the office of the chief executive officer. “In a challenging retail environment, we have had to make some very tough choices, but we are confident that the steps taken today provide an opportunity to continue a marketing process that provides the most efficient means of maximizing value to our stakeholders.
“Throughout this process we will be focused on developing the promising interest already shown by potential bidders, and maintaining operational momentum toward a stronger business,” she added.
The retailer, which employs a little over 1,100 full-time and 2,300 part-time employees, owned 458 U.S. stores as of February, according to regulatory filings. The company has 362 Motherhood Maternity Stores, 26 Pea in the Pod stores and 70 Destination Maternity stores. It operates additional stores globally and through franchise deals.
Kirkland & Ellis LLP is acting as Destination Maternity’s legal counsel, Greenhill & Co. LLC is acting as investment banker, and Berkeley Research Group LLC (BRG) is serving as Destination Maternity’s restructuring advisor. BRG’s Robert Duffy has been appointed as the company’s chief restructuring officer.i