Soft Surroundings, which operates a store at Spanish Springs Town Square, has filed for bankruptcy.
The women’s clothing and home goods retailer, based in St. Louis, has filed for Chapter 11 bankruptcy. It operates 44 stores across the country. The bankruptcy was filed in the Southern District of Texas.
The company is looking to sell its e-commerce business to Coldwater Creek, which previously operated a store at Lake Sumter Landing. That store closed in 2014 amid Coldwater Creek’s own financial struggles.
Soft Surroundings has secured $18 million in debtor-in-possession financing from Gordon Brothers, subject to court approval, to enable business continuity. The funding will enable the company to continue to operate the business and meet its financial obligations, including the timely payment of employee wages and benefits without interruption, vendor payment for goods and services received on or after the filing date and other commitments during the restructuring, according to a news release.
“Over the past year, we have taken significant steps to fortify our financial standing including rightsizing our business to better match current market conditions.  Our commitment to our stakeholders has never wavered as we meticulously evaluated the best path forward and are welcoming this next step to financially secure a bright future for Soft Surroundings. This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners,” said Executive Chair Bridgit Lombard.
