Delia’s to File for Bankruptcy as Sale Plan Fails

Delia's the struggling clothing chain that caters to teenage girls, said it will file for Chapter 11 bankruptcy protection and liquidate all merchandise after efforts to raise financing or find a buyer foundered. Delia's will seek bankruptcy protection in the "very near term," according to a statement from the New York-based company today. The retailer has entered into an agreement with Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC, to dispose of assets, including fixtures and equipment. The company has reported a loss in each of its last fiscal five years.