Body Central Says Credit Line With Crystal Has Been TerminatedLauren Coleman-Lochner
Body Central Corp., the struggling women’s clothing retailer, said lender Crystal Financial LLC has terminated its $17 million credit line, dealing another blow to a company that’s already exploring bankruptcy.
The lender is cutting the loan because of a notice of default this week from holders of $18 million in debt, Body Central said today in a regulatory filing. The Jacksonville, Florida-based retail chain said it doesn’t currently owe any money to Crystal.
The move means Body Central no longer has access to revolving credit, which retailers rely on for their everyday needs. The company is preparing a bankruptcy filing that may come within days, people familiar with the matter said this week.
If it proceeds with the filing, Body Central would join a number of women’s clothing chains seeking protection from creditors in the last few weeks. Deb Stores Holding LLC and Delia’s Inc. filed for bankruptcy last month, hurt by competition from online and fast-fashion retailers.
Body Central fell 5.9 percent to 24 cents as of 10:42 a.m. in New York. The shares plunged 97 percent last year.