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Coldwater Creek

CASE STUDY

Generated additional returns through the disposition of over $500 million of inventory and furniture, fixtures and equipment in all 366 locations as well as intellectual property for this specialty retailer of women's apparel

Client COLDWATER CREEK

By The Numbers

Coldwater Creek specialized in women’s fashion and accessories with 366 locations across the United States, in addition to catalog and e-commerce channels. Gordon Brothers appraised the company’s inventory, which contemplated the sale of all Premium, Factory and Spa concept inventory through brick-and-mortar locations nationwide. Known for its distinctive mature women’s fashion, the company struggled against competitive forces and in 2014, filed for Chapter 11 bankruptcy. Gordon Brothers won at auction the exclusive right to sell over $515 million of inventory, furniture, fixtures and equipment, as well as the designation rights to sell the Coldwater Creek intellectual property. As part of a joint venture, we managed the store closing process for all Coldwater Creek locations. The team also managed the Company’s social media channels, website, email campaigns and customer database to optimize the going-out-of business sales.

To enhance the store closing sales we invested additional capital and collaborated with the company’s buyers and merchandising staff to source inventory to complement the existing assortment. Our ability to extend a line of credit and secure additional merchandise allowed for a significant increase in the return to the Estate and its creditors. We also leveraged our real estate expertise to collaborate with landlords to extend per diem rent leases for over 100 Coldwater Creek stores.  These extension efforts were successful in more than 90% of the lease negotiations.

The solution provided by Gordon Brothers resulted in the monetization of over $515 million of retail inventory as well as furniture, fixtures and equipment across all Coldwater Creek stores, distribution centers and corporate offices. We designated the intellectual property to Sycamore Partners who has relaunched the Coldwater Creek website and manages the brand today.