The US arm of Crabtree & Evelyn has filed for Chapter 11 bankruptcy protection.
The health and beauty retailer’s American business operates 126 stores in 34 states. It expects its sales to fall by a quarter this year and to lose $13.3m on sales of $100m, and intends to use the Chapter 11 protection to close some stores and renegotiate leases on others.
In a court filing, the company blamed not only the bad economic situation in the US, but also management changes and a “disconnect” between management pay and performance.
The company, which is backed by investors from Kuala Lumpur, stressed that its UK business remains unaffected by the problems in the US.
No comments yet