Popular retailer closing all stores after Chapter 11 bankruptcy filing

Popular retail brand names seem to never actually go away. Bed Bath & Beyond, for example, closed all of its stores and ceased operations, but the former Overstock.com purchased and adopted its name.

Versions of the same thing have happened with countless brands that went bankrupt and closed but then reappeared under new owners. In most cases, the reemergences were more an appropriation of the name than an actual comeback.

You can, for example, still buy Sharper Image-branded merchandise, but the toys and gadgets being sold don’t really reflect what the once-popular brand sold. That has become a pretty common phenomenon as there’s value in using a brand that people remember even if the new version has little to do with the old one.

Once-big retail names including FAO Schwarz, The Limited, Wet Seal, American Apparel, Circuit City and HHGregg have all made appearances after the original companies using those names closed.

In most cases, the new versions of these once-proud brand names don’t resemble their former incarnation in any way. It’s like giving your new hamster the name of your dearly departed dog — There might be pleasant associations, but it’s not the same.

Malls have seen the departure of brands that were long-time fixtures. Image source: Shutterstock

Popular women’s clothing retailer shuts its doors

Soft Surroundings filed for Chapter 11 bankruptcy protection in September 2023. At the time of its filing, the woman’s clothing chain operated 44 stores in 24 states.

The company entered bankruptcy with an agreement in place to sell its brand to Coldwater Creek.

“Soft Surroundings has secured $18 million in debtor-in-possession (“DIP”) financing from Gordon Brothers, subject to court approval, to enable business continuity. The DIP will enable the Company to continue to operate the business and meet its financial obligations, including the timely payment of employee wages and benefits without interruption, vendor payment for goods and services received on or after the filing date and other commitments during the restructuring,” the company said in a press release.

The company said that the new owner planned “will continue ongoing direct-to-consumer and e-commerce operations.” It did not specifically say that Coldwater Creek would close all of its stores, but it was implied that Soft Surroundings would live on only as an online brand.

Coldwater Creek also operates as a digital-only brand.

Soft Surroundings ends its brick-and-mortar business

Soft Surroundings actually began its life as a catalog business before opening stores in 2005. At its height, the chain operated as many as 70 retail stores, but the Covid-19 pandemic forced that number down significantly.

It has been known for months that Coldwater Creek intended to close Soft Surroundings’ brick-and-mortar locations, and those shutdowns have been completed. The chain slowly closed its stores over the course of a few months finishing the process at the end of February.

“Our commitment to our stakeholders has never wavered as we meticulously evaluated the best path forward and are welcoming this next step to financially secure a bright future for Soft Surroundings. This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners,” said Soft Surroundings Executive Chair Bridgit Lombard.

Coldwater Creek closed down its brick-and-mortar presence in 2020.

“The challenging issues brought on by COVID-19 have led us down a path we were not expecting,” the company shared on its website. “Coldwater Creek’s retail locations and website are closed and we are unable to take any orders. Thank you for being a valued part of our family and story.”

Coldwater Creek was purchased by NewTimes, the parent company that now owns Soft Surroundings, and returned as a digital-only brand a few months later.