Fashion retailers are falling quickly, Charlotte Russe adding its Chapter 11 filing to the mix. Charlotte Russe filed for bankruptcy originally with a plan to close about 90 stores. However, this plan of reorganization eventually descended until the plans changed to include the closing of 500 stores and a full liquidation of the stores’ inventory.
Closings include the Castleton Square Mall location and the Circle Centre Mall location. There are 11 other locations across Indiana that are also closing. These stores will remain open for some time to liquidate the remaining merchandise. March 21 is the deadline for redeeming gift cards. The Noblesville and Plainfield locations will also be closing in the Indianapolis area.
Retail stores have been going through a greater trend of emerging bankruptcy filings. The physical-store retail model is constantly facing changing dynamics and online virtual-vending competition. This is leaving many traditional, well-established retailers in the dust unable to adapt quickly enough to survive these changes. Many of these stores have been open for generations. Charlotte Russe originated in the mid-1970s.
Many commercial retail spaces are becoming increasingly challenged by this change of dynamics. Shoppers are increasingly more interested in the “experience” of in-person shopping instead of the purchases acquired or by price factor alone. The commercial real estate market and attending corporations may also soon face ongoing waves of bankruptcy and reorganization. This major upheaval of traditional “mega retail” is also creating a reemergence of local shopping and small-business proprietorship. This further drains the retail megastructure that had become so popular during the 1980s. What was the new wave of mega-retail in the 1970s and 1980s may soon become the dusty dinosaur of the past.