Charlotte Russe Inc. Downgraded To 'D' From 'CCC-' On Chapter 11 Bankruptcy Filing

  • U.S.-based fashion retailer Charlotte Russe Inc. has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
  • We are lowering our issuer credit rating on the company to 'D' from 'CCC-'.
  • We are also lowering our issue-level rating on the company's $90 million term loan B to 'D' from 'CCC-'. The '3' recovery rating is unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery.
  • We expect to withdraw all of our ratings on Charlotte Russe after 30 days.
NEW YORK (S&P Global Ratings) Feb. 4, 2019—S&P Global Ratings today took the 
rating actions listed above. The 'D' rating reflects Charlotte Russe's 
announcement today that it filed for Chapter 11 bankruptcy protection. The 
company's operating performance continues to dwindle as it struggles to 
navigate a very challenging environment. The company plans to close 94 of its 
over 500 locations while pursuing a going-concern sale during the 
restructuring process, which is expected to last at least six months.