Ashley Stewart's parent company Urban Brands filed for Chapter 11 bankruptcy Tuesday, after the retailer suffered three years of losses and its liabilities grew upwards of $500 million, according to a Reuters report.
Under the reorganization proposal, the privately held Urban Brands says it wants to sell the assets of its plus-size women's retail chain Ashley Stewart to a new entity, Ashley Stewart LLC. Urban Brands said it's signed a non-biding letter of intent with the new Ashley Stewart, according to the report. But as with all Chapter 11 bankruptcies, the court needs to approve the reorganization proposal and creditors are allowed to weigh in.
Urban Brands indicated that its liabilities range from $100 million to $500 million, with its assets estimated to range between $10 million to $50 million. The Ashley Stewart retail chain includes more than 200 stores across the nation from Los Angeles to New York. In a cost-cutting move, the company could take steps to close under-performing stores.