BANKRUPTCY
Retailer Crabtree & Evelyn files for Chapter 11 protection
NEW YORK — Soap and lotion seller Crabtree & Evelyn Ltd. says it filed for Chapter 11 protection on Wednesday, a victim of the recession and management missteps.
The pressure of repaying debt forced the company to file for bankruptcy, Acting President Stephen Bestwick said in a court filing. He said management changes had resulted in several shifts in strategy, hurting its wholesale business.
The company plans to use the court’s protection to renegotiate leases with reluctant landlords in its effort to restructure and emerge from bankruptcy. The filing does not include operations outside the U. S.
The only Western New York location is at Walden Galleria on the lower level between Sears and Best Buy. Crabtree & Evelyn products are sold at several local retailers, such as Jenss in Amherst, Cappy’s in East Aurora and Peterson Drug in Newfane.
The products are also a popular seller at Vidler’s 5 & 10 in East Aurora, which devotes 25 shelves to the brand.
“Sales have been very strong for us. [The products] have a very good following,” said Sandy McQuillan, a Vidler’s department co-manager. “This comes as a surprise.”
The Woodstock, Conn.- based Crabtree & Evelyn reported in a court filing that it owed $46.2 million in debt and had $31.7 million in assets as of March 31. The privately held company runs 126 retail stores that sell bathroom products and gift basket items at Copley Place in Boston, Watertower Place in Chicago, The Mall at Short Hills in New Jersey, Embarcadero Center in San Francisco and Century City Mall in Los Angeles, among others.
It also sells Vera Bradley bags and wallets as well as La- Source, India Hicks Island Living and Naturals products.
The company first sold products under the Crabtree & Evelyn name in 1972 and its first retail store was opened in 1977. The store’s name is derived from a short form of Crabapple Tree and the last name of John Evelyn, a Briton who wrote about conservation.
News Business Reporter Samantha Maziarz Christmann contributed to this report.
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