Charlotte Russe Holdings and its subsidiaries entered discussions with prospective bidders for a going-concern sale of the company to continue its brick-and-mortar and online platforms.

The company will simultaneously seek court approval of a “stalking horse” liquidation agreement with a contractual joint venture comprised of Gordon Brothers Retail Partners and Hilco Merchant Resources on February 20, 2019 in compliance with its post-petition financing milestones.

Charlotte Russe voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on February 3, 2019.

The company expects that competing bids will be due by March 3, 2019 and an auction will be scheduled for March 5, 2019. In the event that a going-concern transaction is not selected as the highest or otherwise best bid following the conclusion of the auction, the company will facilitate an orderly wind-down of all of its store locations and operations beginning on or about March 7, 2019.

Charlotte Russe and Peek stores and online platforms are currently open and continuing to serve customers. While the company did recently announce an orderly wind-down of a group of approximately 94 of its stores, no additional store closures are being announced at this time.

Charlotte Russe filed a number of customary motions with the U.S. Bankruptcy Court and received preliminary court approval to operate its business in the ordinary course during the Chapter 11 proceedings, including, without limitation, authority to continue payment of employee wages and benefits, and amounts due to shippers and warehousemen, utility service providers and taxing authorities. The company also received authorization from the court to continue to honor certain customer programs.

Cooley serves as the company’s legal counsel, Berkeley Research Group as its financial advisor and Guggenheim Securities as its investment banker.