Thread regarding Charlotte Russe Holding Inc. layoffs

No, the first step is not closing underperforming stores, the first step is usually bankruptcy. The reason being is that Charlotte Russe ties all stores to 10 year leases. These leases can usually be broken during the first 2 years, but not after (its called a kickout clause). That means the only way to get out of the leases for underperforming stores is to reorganize under a chapter 11. However, Charlotte Russe is in such bad financial shape, that a bankruptcy court may not allow a chapter 11 but go straigt to a chapter 13 which will shut down all operations and force a liquidation to pay off whatever it can to debt holders. CR can put out an amazing bonus program, however, they have not paid out a dime in 4 years. You can say you are eligible for a 35% bonus, but they never have to pay it since they underperform every fiscal year.