Charlotte Russe shifted to fashion basics and lost the teens it had dressed for 40 years

Charlotte Russe was a fixture in American malls for more than four decades, selling trend-driven, low-priced clothing to teenage girls and women in their early twenties. At its peak the chain operated more than 500 stores. In February 2019 it filed for Chapter 11 bankruptcy protection, planning to close 94 stores and restructure. By March it had abandoned that plan and announced it would liquidate all remaining locations and close its online store.

The company's own court filings explained the failure plainly. Charlotte Russe said its marketing had 'failed to connect' with teens and young adults and could not 'outpace the rapidly evolving fashion trends.' It had shifted too far toward fashion basics and away from the on-trend, social-media-driven styles its customers expected. It also failed to reposition its e-commerce business and social engagement strategy as shopping moved online.

With no buyer willing to keep the operating business afloat, Charlotte Russe sold its inventory and other assets to liquidator SB360 Capital Partners for $59 million. The brand name and intellectual property were later bought by Toronto-based YM Inc., which reopened about 135 stores under the same name. The original company, however, was gone.