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Crabtree & Evelyn Files for Chapter 11

2009-07-01 | 09:19

Petition filed in the U.S. only, not international

Well-known for its aromatic salves and sprays, Crabtree & Evelyn, Ltd. has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Other members of the Crabtree & Evelyn Group (including affiliates in Canada, the European Union, Hong Kong, Malaysia, Singapore and Australia) have not filed for protection, says the brand.

According to the company, it will pursue a plan of reorganization to capitalize on opportunities for future growth and profitability, including evaluation of its real estate portfolio, strengthening brand strategies and restructuring of its financial obligations.

Day-to-day operations and business will continue to operate through the company's wholesale, e-commerce (www.crabtree-evelyn.com) and retail channels. It also intends to honor customer gift cards, returns and its loyalty program.

Crabtree & Evelyn currently services approximately 3,000 wholesale accounts and operates 125 retail stores and an e-commerce site at www.crabtree-evelyn.com. Other distribution channels include hotel amenities.

"The Crabtree & Evelyn brand remains strong," said Stephen Bestwick, acting president of Crabtree & Evelyn, Ltd. "We are confident that Chapter 11 gives us the opportunity to restructure the company with a business model that will be sustainable for long-term growth. We look forward to continuing our relationships with customers and vendors to help shape that growth."

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