Another wave of retail store closings could impact the region as Destination Maternity Corp., a national retailer for maternity apparel and accessories, has filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.
Destination Maternity listed $260.2 million in assets and $244 million in debts in its bankruptcy petition.
The New Jersey-headquartered company operates 446 stores in the U.S., Canada and Puerto Rico under the Destination Maternity, A Pea in the Pod and Motherhood brands. It also runs 491 shops-within-a-shop in department stores and baby specialty retailers. The company plans to shutter 183 stores as part of the Chapter 11 process, although no specific locations have been named.
Locally, there are Destination Maternity stores in Danbury, Nanuet and Westport. Stores under the Motherhood Maternity banner can be found in Danbury, Scarsdale, Stamford, Trumbull, West Nyack, White Plains and Yonkers.
“This decision is a difficult, but necessary one,” said Lisa Gavales, chairwoman of the Office of the CEO at Destination Maternity. “In a challenging retail environment, we have had to make some very tough choices, but we are confident that the steps taken today provide an opportunity to continue a marketing process that provides the most efficient means of maximizing value to our stakeholders. Throughout this process we will be focused on developing the promising interest already shown by potential bidders, and maintaining operational momentum toward a stronger business.”
