Projo Biz Blog

Crabtree & Evelyn Ltd., which sells personal-care products at 126 stores across the United States, on Wednesday filed for Chapter 11 bankruptcy protection, according to U.S. Bankruptcy Court records.

The retailer said it has been suffering from a drop in sales over the past year, due to the downturn in consumer spending. The company expects a 24.4 percent drop in retail sales for fiscal 2009 from 2008 and a 30 percent decline in wholesale revenue as well.

Crabtree & Evelyn's e-commerce business has not slowed as much as its brick-and-mortar retail operations. The company expects online sales to increase 10 percent in 2009.

Operational improvements are one of the company's main goals during the bankruptcy, Crabtree & Evelyn President Stephen W. Bestwick said in papers filed with the U.S. Bankruptcy Court in New York. The company also expects to close poorly performing stores.

Crabtree & Evelyn sells through specialty retailers around the state. It has eight stores in Massachusetts, including a new store in Patriot Place, Foxboro, and a wholesale outlet in Wrentham Village Premium Outlets.

Correcton: A story in the July 3 edition of The Providence Journal incorrectly implied that the Crabtree & Evelyn store in Garden City Center could be directly affected by the recent Chapter 11 bankruptcy filing of the personal-care products company. The Garden City Center store is independently owned and operated under license with Crabtree & Evelyn, and as such, is not involved in the bankruptcy case.

 Tags  bankruptcy consumer Crabtree & Evelyn

Comments

Horrors! Next thing you know it'll be Grey Poupon said:

It just goes to show that the recession is hitting the great washed as well.

Link | July 2, 2009 10:21 AM
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