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Avenue sold plus-size fashion to 222 stores — it filed Ch11 twice anyway

Avenue ran 222 stores for plus-size women in 33 states — two Chapter 11s in seven years ended 32 years of retail

Avenue Stores · United Retail Group · Versa Capital Management · City Chic Collective · 2019-08-09

What happened

Avenue was founded in 1987 as a plus-size women's apparel retailer serving a demographic that department stores largely ignored. The chain grew steadily through the 1990s and 2000s, reaching 222 stores in 33 states by the late 2010s. Avenue stores were typically located in strip malls and community shopping centers, offering workwear, casual clothing and intimates in sizes 14–32. The brand built a loyal customer base among plus-size women who appreciated having a store designed for their needs rather than a cramped corner of a department store.

Despite filling a genuine market gap, Avenue struggled with the same forces as all mall-based apparel chains. Parent United Retail Group filed for Chapter 11 in early 2012 and was acquired by Versa Capital Management. The new owners cut costs but Avenue remained dependent on in-store traffic. The rise of online plus-size retailers like Torrid and Eloquii, plus plus-size sections at Target and Old Navy, eroded Avenue's position.

Avenue filed for Chapter 11 bankruptcy again on 9 August 2019 in Delaware. Unable to find a buyer to keep the stores operating, the company announced the closure of all 222 physical locations. The e-commerce assets — including the domain avenue.com — were sold to Australian plus-size retailer City Chic Collective in October 2019. City Chic was itself acquired by FullBeauty Brands in June 2024. The Avenue brand continued online, but the 32-year-old retail chain disappeared from American malls.

Why it happened

  • Avenue had a loyal plus-size customer base but the market shifted — Torrid, Eloquii and Universal Standard had better styles, and Target and Old Navy added plus-size sections for less
  • Two Chapter 11s in seven years proved cost-cutting alone could not fix the model — Versa Capital's 2012 buyout did not solve declining mall traffic for a chain with no online sales
  • Strip mall locations had lower rent than indoor malls but also lower foot traffic — customers who loved the brand drove to a strip center rather than passing it on a regular mall trip
  • The plus-size retail category grew, but growth went to online-native brands — Avenue's store-based model captured none of the DTC boom that made plus-size fashion a billion-dollar online category
What it cost222 stores, 2 bankruptcies, 32-year chain liquidatedcostly

The lesson

A loyal customer base in a growing market is not enough when the growth happens somewhere else — the plus-size market expanded, but every dollar went to online brands, not to strip-mall stores.

Aftermath

Avenue filed for Chapter 11 on 9 August 2019 and closed all 222 physical stores. City Chic Collective acquired the e-commerce assets including avenue.com in October 2019 and operated the brand online. City Chic Collective was acquired by FullBeauty Brands in June 2024. The Avenue brand name survived as an e-commerce operation, but the 32-year retail chain was dismantled.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →