Home / Motherhood / Maternity chain files for bankruptcy, 200+ stores eyed for closure
Maternity chain files for bankruptcy, 200+ stores eyed for closure

Maternity chain files for bankruptcy, 200+ stores eyed for closure

Destination Maternity filed for bankruptcy protection from creditors on Tuesday, Oct. 22, 2019, with the company operating three stores in Connecticut along with another 11 outlets for its Motherhood Maternity affiliate.

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Destination Maternity filed for bankruptcy protection from creditors on Tuesday, Oct. 22, 2019, with the company operating three stores in Connecticut along with another 11 outlets for its Motherhood Maternity

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Destination Maternity filed for bankruptcy protection from creditors on Tuesday, Oct. 22, 2019, with the company operating three stores in Connecticut along with another 11 outlets for its Motherhood Maternity affiliate.

less

Destination Maternity filed for bankruptcy protection from creditors on Tuesday, Oct. 22, 2019, with the company operating three stores in Connecticut along with another 11 outlets for its Motherhood Maternity

… more

Destination Maternity filed Tuesday for bankruptcy protection, with the retailer planning to identify about 150 stores slated for closure in the coming weeks and as many as 60 more to follow.

In Connecticut, Destination Maternity lists locations in Danbury, Westport and South Windsor, with affiliate Motherhood Maternity embedded in Macy’s department stores in Danbury, Milford, Stamford and Trumbull among other locations. The company also owns A Pea in the Pod which has 40 locations nationally, none in Connecticut.

Destination Maternity indicated it expects to continue normal customer operations and payments to vendors and employees as it goes through the chapter 11 bankruptcy restructuring process. The company lists assets of $260 million and debt of $244 million. Among the company’s largest creditors are overseas apparel vendors and U.S. shopping center operators like Brookfield Properties, Simon Property Group and Westfield.

The Moorestown, N.J.-based chain has been led since June by board director Lisa Gavales, a University of Bridgeport graduate who led Things Remembered for three years, with the personalized memento chain filing itself for bankruptcy earlier this year.

New Canaan resident Nathan Miller was Destination Maternity’s third largest investor as of the bankruptcy filing, with Miller having pressed the company to overhaul its operations and seeking in 2018 to install multiple directors on the company’s board.

Gaveles did not field questions from analysts on a September conference call in which she disclosed possible alternatives for Destination Maternity including a sale and “capital structure optimization” in her words, without specifying a bankruptcy.

“It has become clear to me that we need to take more prudent and decisive actions to preserve liquidity and ensure we position this business to drive profitable growth,” Gavales said in September. “I continue to believe in this business and the strength of these brands.”

Alex.Soule@scni.com; 203-842-2545; @casoulman