An American clothing retail brand declares bankruptcy

The competition in the global clothing retail industry is becoming increasingly fierce. Recently, “Luxe.Co” just reported that the bankrupt Dutch brand Mexx was acquired and the old American Jones New York closed all its stores (original link).
In the past three months, five clothing retail brands in the United States have declared bankruptcy, and Cache is the latest to fall.
​Recently Bankrupt American Clothing Brands
In December 2014, teen clothing brands DebShops and Delia*s Inc filed for bankruptcy one after another;
In January 2015, the mall-leading clothing retail brand BodyCentralCorp closed its store;
In January 2015, teen women’s clothing and accessories brand WetSeal also filed for bankruptcy.
According to Reuters, in December 2014, Cache began to evaluate strategic alternatives and considered an overall sale, but ultimately failed to escape the fate of bankruptcy. Cache currently has assets of US$10 million to US$50 million and liabilities of US$50 million to US$100 million.
Currently, Cache is seeking bankruptcy protection, and Salus Capital Partners LLC has promised to provide Cache with up to $22 million in bankruptcy protection financing. Cache stated in its bankruptcy application that as e-commerce rapidly occupied the market and consumer tastes continued to change, the physical store retail market became increasingly sluggish. Indeed, many similar youth clothing brands are under tremendous pressure: young consumers are increasingly preferring fast fashion, such as H&M, Forever21 and Inditex’s Zara, and online retailers (such as Amazon, etc.) are also favored.
About Cache
CacheCache has a 40-year history and is the first women’s clothing retailer to introduce European luxury brands such as Armani and Versace to the United States. This is the second time in the company’s history that it has gone bankrupt; the last time was in 1986 and it came back in 1988. Currently, Cache’s main stores are in relatively high-end shopping malls, and it also has 218 outlet stores. It has continued to suffer losses in the past nine quarters and had approximately 2,652 employees in 2013. It is not difficult to see that these five bankrupt brands mostly target teenagers (heavy Internet users), and their sales mostly rely on large department stores and shopping malls. They are the primary victims of the reduction in ground passenger flow.