Six Illinois locations of Charming Charlie could close, according to a new report, if the accessories chain gets court approval after filing for Chapter 11 bankruptcy this week.
The six stores include locations in Lombard, South Barrington, Mt. Prospect, Vernon Hills, Wheaton and Kildeer, the Chicago Tribune reports, citing court documents.
"Subject to Court approval, the Company also intends to move forward with its previously announced plans to close underperforming locations and simplify its business operations," the chain said in a statement announcing the company's restructuring.
The stores are expected to stay open during the holidays, and 15 other locations in Illinois will remain open, according to the Tribune.
"During this holiday season, CharmingCharlie.com and hundreds of our stores across the country are open for business and serving customers," said Lana Krauter, Interim Chief Executive Officer of Charming Charlie, in a statement.
According to the statement, Charming Charlie secured commitments for $20 million in new-money financing from lenders and a $35 million asset backed loan with current lenders.
"Both financing arrangements, which are subject to court approval, are intended to ensure Charming Charlie is able to continue meeting its financial obligations throughout the Chapter 11 case," the company said.