If you are a fashionista or just love to collect clothes (because everyone has their hobbies), you might have heard the gossip about Is Coldwater Creek going out of business 2023? Is it finally the end for the company?
Coldwater Creek is a beloved American catalog and digitally native retailer of women’s apparel, accessories, and home decor.
The company has been in the business for almost 39 years now and has seen many ups and downs. However, this gossip of shutting down its entire business is something bothering its loyal customers and needs to be checked with the facts.
So, without further delay, hit the gas on the pedal, and let’s move to understand if your favorite store really going out of business.
About Coldwater Creek
Coldwater Creek is a brand that also focuses on selling women’s clothes, home decor, and accessories.
The story of Coldwater Creek started way back in 1984 when Dennis and Ann Pence relocated from Manhattan to the resort town of Sandpoint in Idaho. They started with a direct mail business, and by 1990, millions of catalogs were being mailed to its customers.
By 1991, the revenues reached $11 million with a profit of $1.6 million. The sales also reached new heights, totaling $18.8 million in 1992.
The company was flourishing and set a new benchmark of revenue exceeding $1 billion in 2007. However, in 2010, the company was facing challenges, with revenue dropping $981 million with a net loss of $44.1 million.
The times were tough for the company to the extent that it had to secure a loan of $65 million from Golden Gate Capital.
Despite all these challenges, Coldwater Creek remains to be a favorite spot for shoppers.
Is Coldwater Creek Going Out Of Business 2023?
Coldwater Creek ran its stores, a catalog, an online business, and even spas that catered to women between 35 and 50. But despite successful operations, the debt and poor holiday period forced the company to go bankrupt in 2014.
Before it, the chain spent six years evaluating its options, but weak consumer spending and a failure to find fashion that resonated with the customers drove the company to file for bankruptcy.
Fortunately, under Sycamore Partners, it started to open new physical stores again in 2017.
However, it didn’t last longer for certain reasons, and Coldwater Creek is back to struggles for survival.
But despite all the challenges, Coldwater Creek has continued its business through its online website. It is not planning to shut down its online business in 2023.
Why Is Coldwater Creek Closing Its Business?
Coldwater Creek has struggled through expansion, contraction, liquidation, and rebirth over the years.
After it went bankrupt in 2014, the company’s intellectual property rights were purchased by Sycamore Partners.
Under Sycamore Partners, the retail company re-entered physical locations in 2018. By 2020, Coldwater Creek had opened 13 new physical stores, according to the documents filling with the Delaware court.
As the company was moving towards wealth again, COVID-19 broke the bank of Coldwater Creek. The apparel sales were already stagnant, and the pandemic gave a dual blow to the company.
Moreover, Coldwater Creek has struggled to connect with young customers in recent years. As a result, the retailer ranked as one of the lowest brands among the millennials.
Who Is The New Owner Of Coldwater Creek?
The new owner of Coldwater Creek is Newtimes Group. Newtimes Group emerged as a stalked horse for the assets of the retail company and bought the assets of the company for $12.2 million in September 2020.
The assets in the sale included
- Intellectual property,
- Libraries for the banner’s catalog,
- Fitting forms and patterns,
- Fabric patterns
- Bestsellers, and
- Other assets.
Under the ownership of Newtimes Group, Coldwater Creek is all set to acquire Soft Surroundings and flourish with the given second life.
Newtimes is a Hong Kong-based company specializing in fabric, design, production, logistics, and quality. The company works with 600 vendors and operates locations in 40 countries across the world.
What Is The Revenue Of Coldwater Creek Over The Years?
There is no information on the revenue of the company after it filed for bankruptcy. However, the company revealed its revenue for 2022, which is $2.3 million.
This table represents Coldwater Creek’s revenue over the years from 2010-2013:
|Year||Revenue ($)||In Millions ($)||Inflation Adjusted Revenue ( Millions)||Revenue Change From Previous Year|
After checking the facts, the conclusion to ” Is Coldwater Creek going out of business 2023?” is that the company is not going out of business.
Although the company’s previous owner, Sycamore Partners, closed all its 13 stores in July, the company has continued its business through its online website.
Is Coldwater Creeks owned by Talbots?
No, Coldwater Creeks is owned by Newtimes. However, the company’s previous owner, Sycamore Group, owned Talbots, Nine West and Stuart Weitzman.
Where is the headquarters of Coldwater Creek?
The headquarters of Coldwater Creek is located in Hingham, Massachusetts, United States.
What companies Coldwater Creek has acquired?
Coldwater Creek has acquired Creek Bar & Grill and Soft Surroundings.