Another beloved retailer is entangled in “Is Soft Surroundings Going Out Of Business 2023?” Soft Surroundings is a fashion retail business that focuses on providing trendy and comfy clothes and accessories to women.
However, its store closures have recently raised suspicions among people of the business shutdown.
Let’s find out how much of this is true by understanding Soft Surroundings, what is the future of the company, and if yes, then what are the reasons that forced it to go out of business?
About Soft Surroundings
Soft Surroundings is a fashion retail business that was founded in 1999 by Robin Sheldon. The brand focuses on women’s clothing and accessories.
Over the years, it has developed into one of the well-known retail brands in the nation, which provides trendy and comfy products.
The founder, Robin Sheldon, claims that the brand seeks to offer each woman clothing, cosmetics, and bedroom accessories. In this context, she added, we are committed to persuading women to treat themselves well. In every manner we can, we wish to assist her.
Is Soft Surroundings Going Out Of Business 2023?
Soft Surroundings has filed for Chapter 11 bankruptcy in the Southern District of Texas’s Houston Division.
Soft Surroundings Texas’s stores include
- Southlake Town Square,
- Preston Park Village In Plano,
- Town and Country in Houston,
- The Arboretum at Great Hills in Austin, and
- Kingsgate Center in Lubbock.
It joined the list of other high-profit retail bankruptcies, which includes
The brand earlier had 80 physical locations, now reduced to 44. These 44 locations are also scheduled to be shut down permanently in 24 states.
According to the employees of these 44 stores, they have been told that the stores will wind down and permanently close by January or December of this year.
However, there is no official statement from Soft Surroundings about shutting down it business. But for now, it’s closing all its stores, which has caused much sadness for the customers as the store is known for its large discounts ranging from 70% to 90%.
Why Is Soft Surroundings Going Out Of Business?
During the pandemic, the brand has encountered rising competition, which can be a significant reason for the demise of Soft Surroundings.
The sales of the brand were also impacted as consumers were also squeezed by inflation and other financial pressures, which made them shift to off-price stores and promotional events in the hunt for good deals.
According to Curt Kroll, the company’s restructuring officer, the Shift in the competitive landscape, shift towards online platforms, and increased cost of goods and services due to inflation and COVID-19 all impacted the financial position of the company.
Who Owns Soft Surroundings?
Soft Surroundings opened its first store in 2005 in St. Louis. Then, in 2012, Brentwood Asoosicates became the majority shareholder of the company.
Fast forward to 2023, the brand has filed for bankruptcy and is closing all of its physical stores. However, the brand also has an e-commerce and catalog business, which will be sold to Coldwater Creek.
Coldwater Creek is a brand that also focuses on selling women’s clothes, home decor, and accessories.
What Is The Future Of Soft Surroundings?
E-commerce has provided many businesses, generating $141.6 million in sales last year as per the documents of the court.
Although Soft Surroundings is closing all of its stores, the brand also has its online operations named SoftSurroundings.com and SoftSurroundingsOutlet.com– which generated most of the revenue for the retailer in 2022.
These e-commerce platforms of the brand contributed to generating $74.8 million in sales.
However, despite all this revenue and sales, Soft Surroundings has other plans for its e-commerce sites.
It will not continue to operate its catalog business and e-commerce stores as these will be acquired by Coldwater Creek and will be operated by them.
According to Executive Chair Bridgid Lombard, the company meticulously evaluated the best path forward and is ready to welcome this next step to secure a bright future for Soft Surroundings.
So, overall, the rumors: Is Soft Surroundings going out of business 2023?” are partially true as the company continues to close down all its physical locations but is shifting its focus to its online website.
According to a statement of Executive Chair Bridgid Lombard, the company took all the necessary steps to fortify its financial standing, including rightsizing the business to match the current market conditions.
However, as we can see, these strategies of the company all went in vain. What most impacted the brand is the pandemic.
As per the bankruptcy filing, Soft Surroundings Holding listed its estimated assets as up to $50,000, and its estimated liabilities are between $50 million and $100 million.
But, just because the brand filed for bankruptcy and is closing all its outlets, the brand may not vanish. Soft Surroundings will continue to operate its catalog business and website under Coldwater Creek.
What is the age target group of Soft Surroundings?
Soft Surroundings is an excellent shopping destination for women over 40.
Where is the headquarters of Soft Surroundings?
Soft Surroundings is a retail business which is headquartered in St. Louis Missouri.
What is the reason for financial disbalance of Soft Surroundings?
Curt Kroll, the company’s restructuring officer, stated that macroeconomic conditions and high fixed costs impacted the company’s margins.