Apparel retailer Cache files for bankruptcy (updated)

Cache

04/02/2015 11:54

(Adds details, background) 
    Feb 4 (Reuters) - Cache Inc  CACH.O  has become the fifth 
U.S. apparel retailer to file for bankruptcy in three months as 
the sector struggles with growing competition and lower spending 
by teen shoppers. 
    Cache is seeking a "stalking horse" bidder for its assets 
and it has received commitment for debtor-in-possession 
financing of up to $22 million from Salus Capital Partners LLC, 
the retailer said on Wednesday.  ID:nGNXVCRHWa  
    Cache listed assets of $10 million-$50 million and 
liabilities of $50 million-$100 million. 
    The company said in December that it was evaluating 
strategic alternatives and had received an inquiry regarding a 
potential sale.  ID:nBw4F6V77a      
    The mall-based retailer, which has 218 outlets, has not 
reported a profit in the past nine quarters. Cache had about 
2,652 employees in 2013. 
    The 40-year-old company was the first to bring brands such 
as Armani and Versace to the United States, according to its 
website. 
    Cache blamed the depressed brick-and-mortar retail market, 
the growth of online shopping and rapidly changing consumer 
tastes for its Chapter 11 filing. 
    Several teen apparel retailers have been struggling as young 
shoppers switch to fast-fashion brands such as H&M  HMb.ST , 
Forever 21 and Inditex's  ITX.MC  Zara as well as online 
retailers such as Amazon.com Inc  AMZN.O . 
    Teen apparel retailers Deb Shops and Delia*s Inc  DLIA.O  
filed for bankruptcy in December, while mall-based apparel 
retailer Body Central Corp  BODY.PK  shut shop in January. 
 ID:nL2N0TO1DJ   ID:nL3N0TP42J  
    Wet Seal, which sells apparel and accessories for teen girls 
and young women, filed for bankruptcy protection last month. 
 ID:nL3N0UV3J6  
    The case is In re: Cache Inc: U.S. BankruptcyCourt, District 
of Delaware. No: 15-10172 
 
 (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by 
Kirti Pandey) 
 ((sruthi.ramakrishnan@thomsonreuters.com; Within U.S.+1 646 223 
8780, outside U.S. +91 80 6749 1130; Reuters Messaging: 
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Keywords: CACHE BANKRUPTCY/