Woodstock, CT-based Crabtree & Evelyn, purveyor of fine bath and body products, filed Chapter 11 on July 1, 2009.
A global company, Crabtree said its affiliates in Canada, Europe, Hong Kong, Malaysia, Singapore, and Australia were not included in the filing. The company said it would execute a reorganization plan to improve its prospects for future growth and profitability, which include reducing its number of “loss-making stores” through store closures and lease terminations, strengthening its brand, and restructuring its debt.
Crabtree & Evelyn currently operates 126 stand-alone retail stores and according to CoStar Tenant, the typical store is 2,250 square feet and located in an upscale regional mall or outlet shopping center.
Founded in 1973, Crabtree & Evelyn currently employs about 950 people. The company reported $107.5 million in revenues for fiscal 2008 and is projecting $100 million in sales for 2009. The company has secured Debtor-In-Possession financing that will fund its operations through the bankruptcy process.
Crabtree & Evelyn is a subsidiary of Malaysian company, Kuala Lumpur Kepong Berhad (KLK). In a press release, KLK explained the events leading to Crabtree & Evelyn’s filing, “C&E USA has been unprofitable in recent years due to its cost structure, competition from other brands and weakening consumer spending.” And while the company has taken measures including retrenchments, the freezing of wages, and cost reduction programs, KLK said the efforts could not combat the economic crisis and poor consumer spending, thereby making it necessary to file Chapter 11.
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