Coldwater Creek Inc. (NASDAQ:CWTR) is in deep water and is trying to figure out how to swim before it sinks.
On Monday the Standpoint, Idaho-based women’s specialty apparel retailer announced it is considering courting a merger or joint venture and is suspending its quarterly guidance on expected earnings.
"The Coldwater Creek board and management are committed to taking all appropriate steps to enhance stockholder value and have determined that undertaking a thorough and deliberative evaluation of strategic alternatives, with the assistance of its financial and legal advisers, is in the best interests of the company and all of its stockholders," said Jill Dean, president and CEO.
The company has been struggling through a series of downgrades after it missed third-quarter earnings expectations on Sept. 10 with an earnings-per-share loss of 72 cents, worse than the estimate of a 63-cent loss. The company also reported $149 million in revenue for the quarter, lower than the expected $163 million.
The company has lost 22 percent of its value over the past week, and closed down 3 percent to $1.26 on Monday after touching a 52-week-low.
The company also said it would refrain from disclosing further developments in its restructuring attempts until a specific transaction is approved.
Angelo Young is a general assignment business reporter who joined IBTimes in April 2012. Much of his career has been behind the scenes as a copy editor, assignment editor and...