Coldwater Creek to Explore Strategic Alternatives

Coldwater Creek to Explore Strategic Alternatives

Provides Update on Third Quarter Fiscal 2013 and Guidance Policy

SANDPOINT, Idaho, Oct. 14, 2013 (GLOBE NEWSWIRE) -- Coldwater Creek Inc.
(Nasdaq:CWTR) today announced that its Board of Directors has authorized the
evaluation of strategic alternatives to enhance value for stockholders. The
Executive Committee of the Board will lead this process and intends to
consider a broad range of alternatives, including, but not limited to,
partnerships, joint ventures or a sale or merger of the Company. Perella
Weinberg Partners is serving as exclusive independent financial advisor to
assist the Board of Directors in the evaluation of possible strategic
alternatives.

There can be no assurance that the exploration of strategic alternatives will
result in a transaction.The Company has not set a timetable for completion of
this process and does not intend to disclose further developments with respect
to this process unless and until its Board of Directors approves a specific
transaction or otherwise concludes the review of strategic alternatives.

Business and Guidance Update

The Company noted that the negative comparable retail sales trend identified
in the second quarter has accelerated.Despite the benefits from its ongoing
cost cutting initiatives and real estate optimization activities, the Company
expects third quarter results to be below its previous guidance.

In addition, and concurrent with the announcement that it will evaluate
strategic alternatives, the Company stated it would suspend its practice of
providing quarterly guidance until such time as its business returns to a more
predictable cadence.

"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 advisors, is in the best
interests of the Company and all of its stockholders," said Jill Dean,
President and Chief Executive Officer of Coldwater Creek."As a result of an
increasingly challenging retail environment, we are continuing to take the
necessary steps towards improving our financial position as well as our
long-term prospects as a more competitive and successful company.In that
regard, we will continue to concentrate on maximizing shareholder value with a
relentless focus on driving sales and customer loyalty, as well as prudently
right-sizing the business to today's environment."

Coldwater Creek is a leading specialty retailer of women's apparel, jewelry,
and accessories. The Company was founded in 1984 in Sandpoint, Idaho, and
sells its merchandise through premium retail stores across the country,
online, and through its mobile applications.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release contains "forward-looking statements" within the meaning of
the securities laws, including statements about the Company's plan to evaluate
strategic alternatives.These statements are based on management's current
expectations and are subject to a number of uncertainties, risks and
assumptions that may not fully materialize or may prove incorrect.As a
result, our actual results may differ materially from those expressed or
implied by the forward-looking statements.Important factors that could cause
actual results to differ materially from estimates or projections contained in
the forward-looking statements include, but are not limited to:

  *the risks and uncertainties of any strategic alternative, including
    whether any strategic alternative will be identified and, if identified,
    whether it will be pursued and consummated;
  *the risk that our continued cost-cutting initiatives will not result in
    the expected expense savings and that these initiatives will adversely
    affect our business operations and customer relationships;
  *our ability to improve our brand perception and increase store traffic;
  *the inherent difficulty in forecasting consumer buying and retail traffic
    patterns and trends, which continue to be erratic and are affected by
    factors beyond our control, such as significant weather events, current
    macroeconomic conditions, high unemployment, continuing heavy promotional
    activity in the specialty retail marketplace, and competitive conditions
    and the possibility that because of lower than expected customer response,
    or because of competitive pricing pressures, we may be required to sell
    merchandise at lower than expected margins, or at a loss;
  *the benefits expected from aligning merchandise assortment to our brand
    strategy may not lead to improvements in our financial performance, may
    take longer to achieve than we expect, or may not resonate with our
    customers;
  *our potential inability to continue to fund our operations without
    additional sources of financing and maintain compliance with debt
    covenants if we do not generate sufficient net sales and improve our
    results of operations;
  *potential inability to attract and retain key personnel;
  *our partnership with Alliance Data Systems may not drive additional sales
    and create customer loyalty;
  *difficulties in forecasting consumer demand for our merchandise as a
    result of changing fashion trends and consumer preferences;
  *changing business and economic conditions resulting in our inability to
    realize our sales and earnings expectations;
  *our potential inability to recover the substantial fixed costs of our
    retail store base due to sluggish sales, which may result in impairment
    charges;
  *our revolving line of credit may not be fully available due to borrowing
    base and other limitations;
  *unexpected costs or delays we may encounter with respect to our the
    cost-cutting efforts, which may impact our ability to achieve anticipated
    savings;
  *delays we may encounter in sourcing merchandise from our foreign and
    domestic vendors, including the possibility our vendors may not extend us
    credit on acceptable terms, and the potential inability of our vendors to
    finance production of the goods we order or meet our production needs due
    to raw material or labor shortages;
  *our initiatives to optimize our supply chain capabilities may not lead to
    reduction of our sourcing costs or improvement in our margins;
  *increasing competition from discount retailers and companies that have
    introduced concepts or products similar to ours;
  *marketing initiatives may not be successful in improving the breadth of
    our customer base, or increasing traffic in the near term, or at all;
  *difficulties encountered in anticipating and managing customer returns
    including anticipating the effects of the change to our return policy and
    the possibility that customer returns may be greater than expected;
  *the inherent difficulties in catalog management, for which we incur
    substantial costs prior to mailing that we may not be able to recover, and
    the possibility of unanticipated increases in mailing and printing costs;
  *unexpected costs or problems associated with our efforts to manage the
    complexities of our multi-channel business model, including our efforts to
    maintain our information systems;
  *the actual number and timing of planned store closures depends on a number
    of factors that cannot be predicted, including among other things the
    future performance of our individual stores and negotiations with our
    landlords;

and such other factors as are discussed in our most recent Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
filed with the U.S. Securities and Exchange Commission.You should not place
undue reliance on these forward-looking statements, which are based on current
expectations and speak only as of the date of this release.We do not assume
any obligation to publicly release any revisions to forward-looking statements
to reflect events or changes in our expectations after the date of this
release.

CONTACT: Investor Relations:
         Lyn Walther
         Phone:  208-263-2266
         E-mail: lyn.walther@thecreek.com
        
         Media:
         Sharon Stern / Annabelle Rinehart / Joe Berg
         Joele Frank, Wilkinson Brimmer Katcher
         Phone: 212.355.4449
 
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