Teen apparel retailer Delia*s has filed for Chapter 11 bankruptcy protection on Sunday. The company listed total assets of $74 million and liabilities of $32.2 million. It will begin liquidating its merchandise and disposing of its furnishings and equipment from its 92 stores in malls across the US. Delia*s CEO, Tracy Gardner (formerly of The Gap, Inc., J. Crew, Lands’ End), and COO Brian Lex Austin-Gemas (formerly of ESPRIT), resigned on Friday.
Delia*s is one of many teen apparel retails that are losing market share to “fast-fashion brands such as H&M, Forever 21 and Inditex’s Zara.” Fast-fashion meaning they can bring the latest styles from the runway to their stores within weeks. Reuters reports that Delia*s has also been losing out to online retailers like Amazon who can offer deeper discounts on teen clothing.