CORONA, Calif.--(BUSINESS WIRE)--Anchor Blue, Inc. and its parent, Anchor Blue Holding Corp. (collectively, “Anchor Blue” or the "Company"), a specialty retailer of casual apparel and accessories for the teenage market, today announced that the Company has filed a petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code with the Bankruptcy Court for the District of Delaware.
In connection with the filing, Anchor Blue plans to implement the orderly liquidation of all of the Company’s assets, and has begun going out of business sales at all of its retail stores. All Anchor Blue stores are stocked with fashionable merchandise, and will remain open for business in the immediate future, with strong discounts offered to consumers to sell off the inventory and maximize store sales throughout the wind-down period. The Company has requested full authority to pay employee wages and benefits on an uninterrupted basis through the end of the wind-down process.
Anchor Blue also announced that it will honor all gift cards, customer programs and customer returns of merchandise until January 17, 2011.
Anchor Blue said that when it emerged from a restructuring in August 2009, the Company worked to implement a series of initiatives to position the business for future growth, including introducing new merchandise, reducing overhead costs, launching a new store concept, and bolstering its executive team. However, Anchor Blue has continued to face strong headwinds from product promotions and discounts offered by larger retailers and unusually disruptive weather conditions in Southern California where the majority of its stores are located. Additional capital was injected into the business in November 2010 to help Anchor Blue through the holiday season, but the Company suffered severe sales declines in December which further eroded its financial position.
After extensively exploring alternatives following thorough consultation with its legal and financial advisors, Anchor Blue determined that an orderly sale of its assets through a Chapter 11 process is the most prudent and effective means of maximizing value for the Company's stakeholders.
Legal advisors to Anchor Blue were Morgan Lewis, and financial advisors were FTI Consulting.
About Anchor Blue, Inc.
Anchor Blue, Inc. is a specialty retailer of casual apparel and accessories for the teenage market. Founded in 1972, the Company has 117 stores primarily located in California. Anchor Blue offers a great assortment of well-priced fashion basics with West Coast style in a fun environment.