Coldwater Creek future unclear as firm buys brand
PARKERSBURG- A private equity firm is buying the financially troubled Coldwater Creek, but the future of local operations is still in question.
Sycamore Partners announced it has acquired the Coldwater Creek brand and other intellectual property, according to a press release from Sycamore Partners.
Sycamore intends to re-launch Coldwater Creek as an independent portfolio company, the release said.
“Coldwater Creek is an outstanding brand with a 30-year heritage and strong support from its loyal base of longtime customers,” said Peter Morrow, a managing director of Sycamore Partners. “We are excited about adding Coldwater Creek to our growing portfolio of leading retail brands and look forward to reintroducing the brand to the marketplace.”
The intellectual property was purchased through Sycamore affiliate CWC Direct LLC in conjunction with Coldwater Creek’s ongoing Chapter 11 proceedings in the U.S. Bankruptcy Court in Wilmington, Del.
Sycamore Partners is a private equity firm based in New York. Sycamore raised its first fund in 2011 and has in excess of $3.5 billion in assets under management.
Coldwater Creek announced in April it filed for bankruptcy and announced it will begin winding down operations.
The Parkersburg distribution center and outlet store employed 300 people.
Several months ago, on the advice of the board of directors and financial and legal advisers, the company began looking at a potential buyer or other source of capital for the retailer that had an e-commerce and brick and mortar presence, company officials said.
A company spokesman, who did not wish to be identified, said the future of the Parkersburg facility has yet to be determined.
Additional information about the re-launch of Coldwater Creek will be provided at a later date, the Sycamore Partners press release said.