I'm sure many of Cache's loyal customers are wondering why Cache closed its stores so suddenly? Well, unfortunately the popular New York based company filed for a Chapter 11 bankruptcy. However, the Cache brand was purchased out of bankruptcy by The Cato Corporation, a leading fashion retailer. Lets hope they keep the same style and quality.
Cache is among several other retailers like Wet Seal, Deb, and Cold Water Creek; who all filed bankruptcy over the last couple of years. Could your favorite retailer be next? Let's hope not.
Some may ask what happens to the store credits and gift cards once a store files for bankruptcy, and the company is purchased by another retailer? Unfortunately, once the retailer files for bankruptcy they can no longer honer any financial agreements made with the previous company.
Is, the internet to blame for these recent closures? Many say, more and more consumers are starting to shop online vs actually going to the mall. Retailers have seen a major decrease in foot traffic in stores; causing businesses to downsize in square footage, staff and some to close doors.