(Reuters) - Women’s apparel retailer Coldwater Creek Inc CWTR.O could file for bankruptcy within a week as it struggles with high debt and declining sales, the Wall Street Journal reported, citing people familiar with the matter.
The company’s shares fell as much as 76 percent in early trading on Monday.
Attempts to avoid a bankruptcy filing by refinancing debt or selling itself to a private-equity buyer were unsuccessful, the sources told the Journal. (r.reuters.com/vez97v)
Coldwater Creek was not immediately available for comment.
Sales fell 18 percent to $154.5 million in the third quarter ended November 2, while same-store sales declined 16.8 percent. The company’s net loss widened to $23.8 million, or 78 cents per share, from $20.5 million, or 67 cents per share, a year earlier.
Coldwater Creek, founded in 1984 in Sandpoint, Idaho, had about $353.1 million in total liabilities and $6.8 million in cash as of November 2, according to its latest quarterly filing.
The company also sells jewelry and accessories through mall-based retail stores, online, and through its catalogs.
Coldwater Creek operated about 343 retail stores as of November 2.
Shares of the company, which fell 78 percent in the 12 months to Friday’s close, were down 73 percent at 18 cents in late afternoon trading on the Nasdaq.
Reporting by Siddharth Cavale in Bangalore; Editing by Sriraj Kalluvila