THE US business of soaps and fragrances retailer Crabtree & Evelyn yesterday applied for bankruptcy protection from creditors.
In a move which will not affect the 40-store UK chain, Crabtree & Evelyn's North American operation said it had been hurt by the decline in the housing market and tightened consumer spending.
The firm, which said it had 126 stores across the US em
ploying around 950 people, filed for Chapter 11 bankruptcy in a Manhattan court yesterday.
Other global Crabtree & Evelyn businesses – including in the UK – are run independently and will continue as normal.
A statement from the firm said: "The UK business continues to succeed and expand, with two new store openings planned in the coming months."
In court filings, the firm said it planned to close some unprofitable stores and try to renegotiate leases on others. The company's US acting president, Stephen Bestwick, said management changes had caused lower sales to wholesale accounts.
The firm said the alterations in strategy – including a dislocation between executive pay and performance – had added further pressure to the business.
"Crabtree & Evelyn USA will pursue a plan of reorganisation to capitalise on opportunities for future growth and profitability, including evaluation of its real estate portfolio, strengthening brand strategies and restructuring of its financial obligations," the firm said.
The full article contains 218 words and appears in The Scotsman newspaper.
