Friday, January 12, 2018

Women's fashion retailer A'gaci files for bankruptcy

Retail Dive

Women's apparel retailer A'gaci filed for Chapter 11 bankruptcy protection this week after a rapid brick-and-mortar expansion in recent years "spread the organization too thin to effectively respond to the rapidly changing trends in the retail market," the company's chief financial officer said in a court filing.

After building out 21 new stores over the past two years, A'gaci is now looking to close 49 stores — almost 65% of its footprint — in bankruptcy, A'gaci CFO Mark Butterbach said in the filing. Along with the overexpansion, Butterbach said the consumer shift toward online shopping, trouble implementing a new business software system, and major hurricanes last year — which "ravaged" some of the retailer's most profitable stores — forced the company into bankruptcy.. . . more

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