FORMERLY PE OWNED
Charlotte Russe
teen fashion · San Diego, CA
- PE Firm
- Advent International →
- Year Acquired
- 2009
PE saddled a teen fashion chain with $175 million in debt, watched revenue crater, and liquidated 500+ stores.
What Happened
- Advent International bought Charlotte Russe in 2009 for $380 million, leaving the company with $175 million in acquisition debt
- That $175 million debt balloon grew to $255 million as the company struggled to service it — borrowing more to stay afloat while the fashion business deteriorated
- Revenue plunged from $928 million to $795 million as the chain failed to keep up with fast fashion competitors and shifting teen shopping habits
- Filed for Chapter 11 in February 2019, initially closing 94 stores — but no buyer materialized, and the 416 remaining stores were liquidated within two months
The Damage Done
- All 500+ stores liquidated in early 2019 — a brand that had been a mall staple for teen shoppers since 1975 was gone in a matter of weeks
- Thousands of retail workers, many of them young women in their first jobs, lost employment as the liquidation swept through malls nationwide
- Customers got two weeks to burn through gift cards — stores stopped accepting them on March 21, 2019, and returns ended with them
- Another teen fashion anchor disappeared from American malls, accelerating the decline of shopping centers that were already losing foot traffic