Destination Maternity Corporation filed for Chapter 11 bankruptcy on Monday in Delaware under docket number 19-12256.
The large maternity-wear retailer owns approximately 458 U.S. stores comprised of 362 Motherhood Maternity Stores, 26 Pea in the Pod stores, and 70 Destination Maternity stores.
The Debtor’s prime demographic is diminishing as generational shifts are effecting the industry. Specifically, the U.S. birthrate has dropped to a 32-year low, according to the U.S. Department of Health and Human Services. This generational shift reflects that Millennials are having children later, or not at all.
CNBC reports that other baby-related retailers are also feeling the pinch of this generational shift, including Huggies diaper-maker Kimberly-Clark and baby oil and bubble bath maker Johnson & Johnson.
The Debtor is working with Kirkland & Ellis to either find a buyer or proceed with a liquidation.
If you have a Motherhood Maternity, Pea in the Pod, or Destination Maternity lease in your center, Stark & Stark’s Shopping Center & Retail Development Group can help.
Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the Eastern District of Missouri, District of New Jersey, Southern District of New York, District of Delaware, District of Minnesota, and the Western and Eastern Districts of Pennsylvania regarding a variety of issues.
Our Group has been counsel to landlords and trade creditors in the Mattress Firm, Toys “R” Us, Payless, Eastern Outfitters (EMS Part 2), EMS, Golfsmith, RadioShack, General Wireless (RadioShack 2), Gander Mountain, A&P, Joyce Leslie, rue21, Central Grocers, and Sports Authority chapter 11 bankruptcy cases.
For more information on how Stark & Stark can assist you, please contact Thomas Onder, Shareholder, at (609) 219-7458 or tonder@stark-stark.com or Joseph Lemkin at (609) 791-7022 or jlemkin@stark-stark.com.