Young women’s apparel retailer files Chapter 11
January 11, 2016 | By Marianne Wilson
A decades-old apparel retailer finds itself no longer in fashion, undone by fast-fashion competition and a lack of e-commerce expertise.
Joyce Leslie filed for Chapter 11 bankruptcy court protection in White Plains, New York, and is a likely candidate for liquidation, Women’s Wear Daily reported. The chain, founded in 1945, operates 47 stores throughout the Northeast.
The company is looking to find a “going-concern†buyer, but if it cannot, it will begin liquidation sales in early February through an agreement with SB Capital Group, Tiger Capital Group and 360 Merchant Solutions, the report said.
Sales at Joyce Leslie have been on the decline for the past several years. At the end of January 2012, the posted $104 million in sales, which dropped to $98 million in January 2013. It expects to post annual sales of $63 million for the fiscal year that ends in January 2016, Women’s Wear Daily said.
Welp, looks like my 'retail predictions for 2016' are on track so far, with this and Finish Line closing stores.
This could be bad news for Voorhees Town Center Mall, even though Boscov's and Macy's are staying. Joyce Leslie will close, and very possibly Finish Line, which will leave the lower level somewhat barren. The foodcourt is successful but there needs to be some retail on the lower level.
Hopefully, the mall owner can lure Shoe Dept. Encore as that store tends to open in B/C malls and can fill a lot of space.
Joyce Leslie chose and stayed in a subpar location in Cherry Hill, NJ. Rather than be in the successful mall, it chose to be in a somewhat run down shopping center (Plaza at Cherry Hill) but near the mall. While the mall has high rents in some parts, it doesn't by the JCPenney where Modell's Sporting Goods has been operating for years. Where Joyce Leslie chose to operate isn't a strong center, and it remains the only apparel chain in that center, which meant it got little assisting traffic from other apparel stores. A Raymour & Flanigan (furniture store), Chucke Cheese, LA Fitness, Bottom Dollar Food (now Aldi), Guitar Center, and 3-4 noticeably long term vacant spots wasn't going to help as much as being near a JCPenney (in CH Mall) or atleast some other plaza, where maybe Ross or another apparel chain was located.
However, it chose a decent location in Marlton near a Burlington Coat Factory store. I don't know how it's other sites were positioned.
Hopefully, Mandee which competes will be able to stay around longer. Charlotte Russe, H&M and Forever 21 also compete, but on a much more national scale.