Pinktoe Tarantula Ltd. and affiliates Desert Blonde Tarantula Ltd. and Red Pump Tarantula Ltd. — doing business as Charlotte Olympia — filed a Chapter 11 petition on Saturday in the U.S. Bankruptcy Court for the District of Delaware.
The debtors — an entity of U.K.-based Charlotte Olympia Holdings Ltd. — estimated the value of their assets at $3.26 million, dwarfed by liabilities of $19.2 million.
In a declaration filed with the courts, chief restructuring officer William Kaye said Charlotte Olympia’s U.S. retail outposts — consisting of four locations in New York, California, and Nevada — had historically been unprofitable. (Previously, the company operated a store in Bal Harbour, Florida, which was closed in 2017.)
“The brick-and-mortar retail environment has been experiencing, and continues to experience, unprecedented disruption due to a confluence of factors, including the proliferation of online retailers, changing consumer tastes and demographics, and increased competition,” Kaye stated in the filing. “Despite selling the iconic Charlotte Olympia brand and taking steps to reduce their expenditures, the debtors’ operations are not profitable due to the widespread disruption in the retail industry.”
Through bankruptcy, Pinktoe Tarantula, Desert Blonde Tarantula and Red Rump Tarantula plan to liquidate inventory and close all stores.
The companies have secured $410,000 in debtor-in-possession financing from Three14 Ltd. to support their operations and liquidation costs.
“The closing of our stores in the U.S. is to effectuate a restructuring of our business post-partnership. This is due to the unprecedented disruption in the retail market,” a spokesperson for Charlotte Olympia told FN when reached for comment.
A spokesperson for the brand further confirmed that, despite shuttering its retail stores in the U.S., Charlotte Olympia’s wholesale business remains in tact.
Charlotte Olympia U.S. stores have 21 employees.