Retailer and former mall staple, The Limited, has officially given up on an attempted revival. The news carries very little surprise with it. The proverbial writing has been on the wall for some time.
The brand carrying more than fifty years of business has filed for Chapter 11 bankruptcy protection. This also corresponds with the official closing of all their 250 retail locations.
Owned by Sun Capital Partners, The Limited hired Guggenheim Securities this September in hopes of finding another solution. Neither a sale or brand restructuring became feasible by November when the brand announced the possibility of liquidation.
Their website currently displays a message stating, “We’re sad to say that all The Limited stores nationwide have officially closed their doors. But this isn’t goodbye. The styles you love are still available online — we’re just a quick click away 24 hours a day.”
Accordingly, The Limited still has a chance to continue operations. Their name has already received a “stalking horse bid,” or minimum auction price for their assets. An affiliate of Sycamore Partners has offered an initial $25.75 million for the brand’s web address, media accounts and trademarks.
The private equity firm similarly purchased former women’s clothing brand, Coldwater Creek, who still sells through their website after closing their doors three years ago. It’s possible the same concept could be applied to The Limited as well.
The retailer joins names like Macy’s and Sears who have pointed to lowered mall traffic for their lowered sales. Demand for in-person retail at locations of the kind just isn’t as enticing to consumers as it once was. Stores continue to lose in their ongoing struggle with online retail.
Again, The Limited isn’t the first retailer to file for Chapter 11. With no signs of changing, they may not be the last in the near future either.