Home Textiles Today is reporting that Rachel Ashwell's Shabby Chic is liquidating its assets. Here's the text of the release:
Shabby Chic will soon begin liquidation sales, according to documents filed last week in the federal bankruptcy court in Los Angeles. The sale will not include intellectual property, which will remain in the hands of Shabby Chic operator Rachel Ashwell Designs, Inc.
Hilco Merchant Resources will handle sales of Shabby Chic merchandise, which does not include goods held by licensees, sublicenses and concessionaires such as Target, which offers a sub-branded home collection under the name Simply Shabby Chic.
Sales are expected to conclude in early June.
The company was founded 10 years ago and filed for Chapter 11 bankruptcy protection in late January. According to bankruptcy court filings, Shabby Chic operated eight stores, a distribution center and a manufacturing center. With the exception of two New York stores, all other locations were in California.
Rachel Ashwell said in her blog in January about store closings in Chicago, Illinois; Natick, Massachusetts; Austin, Texas; Atlanta, Georgia; Corte Madera, California"As always, all employees worked with dignity till the end. From the time they knew their time of employment was limited, until the end, they closed the doors of Shabby Chic as gently as possible. Many customers were confused and concerned. "Is ShabbyChic going away completely?" "Why, what happened?" Questions I cannot fully answer. But I know in my heart I am doing everything possible to save as much as possible, and the support of so many continues to fuel the engine. All of your comments posted are heartwarming and enabling me to clear my mind to reestablish my creativity. My biggest fear is of letting the "business take that away." But I wont let any of you down, in how I will pour my heart into my new book. Cracks make for character, and authentic character makes for soul. I think you will all be pleased in the results. Still some stores and e-commerce remain open, selling floral inspired everythings, including our new sleepwear collection."
So, it's looking like all the stores and merchandise on her website will be going away. Do we think this is purely because of the economy or a change in taste? Or possibly it was the watering down of the brand once it was sold in Target. Did you ever see the Simply Shabby Chic items in Target? Simply awful and too pricey. Bad workmanship, mismatched patterns, cheap fabrics. Other designers have sold in Target such as John Derian with great success. The products were budget, yet well done and would encourage a shopper to possibly "buy up" to the luxury level of the brand at some point.
What do you think and will you be hoping for some great buys on the liquidation of Shabby Chic?
