I'm looking into this, and haven't seen it reported anywhere else yet, but I hear eStyle, inc., the parent company of babystyle, cadeau, and kidstyle, filed for bankruptcy protection today.
Stay tuned. [here, I guess because it's been 36 hours since the company filed, and Daddy Types is the only place that seems to have the story. Ah wait, chapter11blog has two auto-generated sentences.]
update a few minutes later, after reviewing some of the filings with the US Bankruptcy Court, Central Calif. District:
The filing actually was yesterday, 3/19, and the first hearing is tomorrow, 3/21.
It looks like the company is feeling the pinch of too-rapid expansion of their retail stores, combined with worse-than-expected mall performance in a few of their locations. They're implementing a reorganization and seeking immediate relief by closing six of their 23 store locations--five babystyle stores, and the Cadeau store on Melrose--and holding liquidation sales of those stores' inventories within five weeks. [Seasonal merchandise, and all.] The bankruptcy filing is part of an attempt to overturn restrictions in some store leases against holding store closing/liquidation sales.
In addition, the filing states:
Details on the locations of the proposed store closings after the jump:
In addition to the online and catalog business, eStyle currently has 21 babystyle stores, and two Cadeau maternity stores [which my wife absolutely loves. The original New York store was the main source of most of her maternity wardrobes for both kids so far; though she didn't use the term "lack of consistent merchandise direction," she did mention that she wasn't feeling either the Cadeau online stuff, or the mix of Cadeau and babystyle in the store this time around. But that's more of a sidebar.]
Anyway, the Ch. 11 filing asks for emergency permission to close 6 stores and conduct liquidation sales of those stores' inventories within the next five weeks, to maximize the value of seasonal merchandise. The stores slated for closing are:
For people in the unprofitable cities, I see some great deals on some strollers and floor models coming soon.
What?!?! Please find out more!
posted by: Andrew at March 20, 2008 9:27 PMDidn't see that coming. Although I did notice that the Mission Viejo store never seemed to be as well stocked as the Fashion Island store in Newport Beach.
posted by: Darren at March 21, 2008 1:26 AMThe Cadeau is right on my block, and I have a ton of baby showers coming up. Hopefully the in-store babystyle gear will be part of the liquidation and not just shipped over to the Montana Ave. store.
[Laurie's a former colleague of mine from way back in the Disney days, so I didn't want to be too "WOOHOO! A SALE!" about things, but if it helps them get straighted out... WOOHOO! -ed.]
posted by: Liz at March 21, 2008 1:50 PMI used to work in corp babystyle. I'm not surprised. I wouldn't blame store growth...all areas of the company were poorly managed. New leadership is needed.
posted by: anon at March 21, 2008 10:43 PMWait.. liquidation sale?! At the CT store?!?! When! How deep a discount will I get on a bugaboo?!?
[In the filing, the CEO says they want to closet he stores by April 30th. When FAO Schwarz went out of business in 2003/4, Bugaboos sold out completely at 20-25% off, but they only had red. -ed.]
posted by: Kaz at March 22, 2008 10:46 AMWow! That is shocking. It seemed as if the stores were doing well out here. I guess they grew too quickly...
posted by: creative-type dad at March 23, 2008 1:51 AMuh, yeah, I need to know when that Willow Bend sale starts.
posted by: tara at March 24, 2008 11:40 AMI just got off the phone with someone at the roosevelt field location, right now the +entire+ store is 20% off, with the closing to happen "sometime in april"....so you cna bet I will be trecking back once a week or so as the discounts rise! too bad, though i enjoy the store....
posted by: amanda at March 25, 2008 12:57 PM All of the bugaboo and other high brand merchandise will be shipped to the remaining stores,(so we hear) sorry no discount on that, however we do have quite the sale going on, and will most likely continue to cut prices until all is gone. Unfortunately, we cannot honor discount coupons, or babybucks, during the closing sale, but the remaining stores will, of course.
We appreciate the wonderful customers we have had at mission viejo, and also the ones who have expressed genuine concern for those of us who have lost our jobs.
Thank you, Babystyle store 5, mission viejo
Hi,
Trust me...no one is more shocked than me to learn Babystyle filed for bankruptcy!! We are one of their T-shirt vendors, Someday Dreamers (golf pro & environmentalist someday tees) and they owe us over $16,000!!! My husband and I are a mom & pop business...thank goodness we have our teaching jobs during the day. However, our business depends on such orders from babystyle. It's a hard pill to swallow knowing they are still selling our merch., but not paying us. Basically, we "gave" them thousands of dollars. Teachers can't afford to give anyone thousands of dollars!! If anyone out there has ANY advice for us, please email us at christy@somedaydreamers.com. Also, go to our web site (www.somedaydreamers.com) and mention you read this. We'll sell you any of our tees for 33% less than what Babystyle sells them for! Thank you!
Christy
posted by: christy at March 27, 2008 9:46 PMMy wife and I are so sad and hope babystyle works through their issue. We just had a little boy and we registered at the babystyle in Manhattan Beach - we were thrilled with the selection and the quality. My wife still wears her Cadeau maternity clothing. I'm a business man and have seen many companies go through Chapter 11 filings and for the most part companies emerge stronger and better than they were before. Good luck Babystyle. We support your decision for change and growth! And we'll continue to shop.
posted by: James at March 28, 2008 12:09 PMHi all - I'd like to give some advice to the companies that find that they may loose some money out of the filing. I was affected a few years ago by the filing of another company in the baby industry and as a business owner I found that eventually you will be paid - At first my small company was in for $32,000 and when it was all said and done I received close to $24.0 as the settlement. I did panic at first, my husband and I had just bought a home in NC and he was still in medical school. Yes, panic...but keep the relationship with the company open. I did and today because of my support and relationship during their struggles I am in their top 20 vendors and bring in about 550,000 per year with just them. It also allowed me to open up additional accounts throughout the industry. In business, nothing is ever perfect and we as small business owners MUST protect ourselves and be prepared. In the bad economic times we're currently in, you have to know these things can and WILL happen, but if you're smart in the beginning this won't affect you at all. Stick with it...you'd hate to be left out if they come back stronger,better and bigger.
Just some advice from one "mom and pop" company to another.
I heard about this last week from a good friend in the industry - and it is upsetting for those of us in the industry. I had this happen to a number of our stores that were closed last year, and we never got paid (Bellini stores). It is part of doing business I guess - but when a big one falls, we all have to take notice.
posted by: Jamie Lentzner at March 30, 2008 1:30 PMjust heard about this yesterday from friends who ship them. i used to work there, but left after after a round of layoffs in 2000 (i wasn't laid off, but everything took on a dark tone after the dot com crash). i've been on maternity leave from my own line and let me just say "thank god" i had no orders for them!!! sad though as the maternity market is so small & not alot of places to sell to...but, hello? cadeau? ummmm, a little too expensive for them. every time they tried that price point, they failed. believe me, there is not a whole lot of people wanting to buy high end maternity-even if they can afford it.
posted by: eternal summer at April 4, 2008 12:39 AMHi,
Regarding the post by Gabby she was wrong about the strollers being sent to other stores. I just got back and was told she no longer works there and the strollers are 20% off. She posted before she even knew what the scoop really was. They currently have some Quinny Zapps, Bugaboo Bees, a Maclaren Triumph(red with stripes),a Maclaren Triumph double in brown,a bugaboo cameleon, and a graco infant carseat. Everything in the store is marked 20% off and if it's marked down you still get an additional 20% off. Also sale shoes are an additional 30% off. I'd call to get an update on their stroller stock though jsut incase. It doesn't seem like the're doing holds either.
...I was in a closing Babystyle store this past weekend after I saw Lucindas email and they did have a few strollers a week ago, but I guess it was a miss shipment and now they have been sent out of the store. The few strollers and car seats they had were all last year models or items in old boxes, damaged boxes. I really wanted a great deal....maybe they'll change their mind.
posted by: Kim at April 8, 2008 8:08 PMI went shopping at Babystyle Mission Viejo yesterday and got 20% off on a Maxi Cosi carseat in a great color that I was going to buy any day anyway. These are never, ever EVER on sale! I think they were out of bugaboos but had lots of bugagoo accessories if you already have one (why???). They did have some rock star and maclaren umbrella strollers that I was eyeing up, but they will have to go down more than 20% to match web prices.
posted by: Rachael at April 21, 2008 5:19 PMI was in the Babystyle in Mission Viejo yesterday and I did see Maclaren Volos and Maxi Cosis, but they were last years colors in the Volos and the car seats were damanged boxes. I purchased one for my sister. The Bugaboo accessories were on sale, but I noticed Bergstroms also has them on sale apperently they're on sale everywhere. Looks like they have a ton of clothing on sale and very little gear stuff. The store closes officially at the end of the month.
posted by: Sean V. at May 6, 2008 3:00 PM
