Charlotte Russe to close 94 stores, file for bankruptcy

Charlotte Russe has filed for Chapter 11 bankruptcy and plans to close 94 stores, the company announced Monday.

The young women's clothing chain becomes the latest mall-based retailer to file for bankruptcy protection, and joins a list that includes Gymboree, Claire's and Mattress Firm.

RELATED: Gymboree in The Woodlands having going-out-of-business sale

After the company reviewed its options, Gymboree is preparing to file for bankruptcy and close all of its stores.

In a court filing Monday, Charlotte Russe, which operates 500 stores in malls around the country, said it "suffered from a dramatic decrease in sales and in-store traffic" and struggled with "the burden of maintaining a large brick-and-mortar presence."

The company hopes to emerge from bankruptcy with a new owner and a lighter balance sheet. It secured $50 million from lenders to continue running about 400 Charlotte Russe and Peek Children's stores, as well as its website, during the bankruptcy.

The chain plans to completely liquidate if it can't find a buyer by Feb. 17, according to a court filing. The company has more than 8,700 employees.

The store in the Galleria Mall and the one in Memorial City Mall will remain open, but the Victoria location will close.

Texas stores closing:

• Cedar Hill: 305 West FM
• Fort Worth: 15853 N. Freeway
• New Braunfels: 257 Creekside Crossing
• Victoria: 7800 N. Navarro St.
• Waco: 6001 West Waco Drive