Destination Maternity has joined the growing list of retailers to file for bankruptcy.
Once the world’s largest maternity apparel retailer, Destination Maternity filed a chapter 11 bankruptcy petition Monday in a Delaware court, citing $260.2 million in assets and another $244 million in debt as of Oct. 5.
“This decision is a difficult, but necessary one,” Lisa Gavales, chair of the office of the chief executive officer, interim ceo and director, said in a statement. “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.”
According to Destination Maternity’s web site, annual revenues at the publicly-traded, Moorestown, N.J.-based company were at one point more $500 million with approximately 5,000 employees.
But the company has been struggling for some time. Sales fell roughly 12 percent last quarter to $84.9 million. For the 12 months ending Aug. 3, 2019, total revenue was just over $363 million.
Executives on last
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