Coldwater Creek (clothing retailer)

Coldwater Creek is an American retailer of women's apparel, accessories, shoes and home décor. The company sells women's clothing in misses, petite and women's plus sizes.

History

From startup to profitability (1984–1986)

In 1984, Dennis and Ann Pence relocated from Manhattan to the resort town of Sandpoint in northern Idaho to start a direct mail business. They bootstrapped the business with savings of only $40,000. Early catalogs were printed in one color by the local newspaper.[1] The first four-color catalog, called Northcountry, was published in 1985. Writing and design were handled in house, leveraging Ann's background as a copy director for Macy's. Northcountry took the then-unusual approach of depicting apparel without models and describing products with colorful prose. By 1986 the company had achieved profitability and had fewer than 10 employees. [1]

Rapid sales growth (1987–2006)

$1 billion mark reached (2007–2013)

In October 2007 Dennis Pence retired as CEO once again, succeeded by Daniel Griesemer.[10] 2007 revenue exceeded $1 billion for the first time growing 35.2% from the prior year. This would be the last profitable year as a public company, with net income of $55.3 million.[6] At the end of 2007 the company had 306 premium retail stores, up from 239 at the end of the previous year, a net increase of 67. In the year end earnings call, management indicated that "the chain target is somewhere between 500 and 550 stores".[11] 2008 was Dan Griesemer's first and only full year as CEO of the company. Annual revenue hit an all-time high that year, coming in at $1.15 billion but the company lost $2.5 million, the first annual loss since 1985.[6] The company ended the year with a strong balance sheet, with $81 million in cash.[12] A big focus for management was to "remain focused on further reducing our cost structure and preserving our cash as business conditions warrant." $30 million in SG&A expense reductions were identified and capital expenses were reduced significantly from the previous year heading into 2009.[13] In September 2009 Dennis Pence returned as CEO, saying in a statement that he was named CEO to bring the company a "return to profitability".[14] Revenue for 2009 reached $1.04 billion, with net loss $56 million for the year. 2010 continued to be challenging, with revenue dropping to $981 million paired with a net loss of $44.1 million. In May 2010, Georgia Shonk Simmons retired as president and CMO, replaced by Jerome Jessup.[15] The strength of the business continued to deteriorate, with revenue dropping to $773 million in 2011. The company's net loss for the year grew to $99.7 million.[16] In July 2012, seeking to shore up a weak cash balance, the company secured a $65 million loan from Golden Gate Capital.[17] Prior to the end of 2012, which would produce further erosion in revenue at $742 million for the year and a loss of $81.8 million,[16] Dennis Pence once again retired. Jill Dean was promoted from her position as Chief Merchandising Officer to president and CEO.[18] 2013 was another tough year despite the change in leadership. In October of that year the company announced restructuring aimed at cutting $20 to $25 million in expenses. It eliminated close to 100 jobs, including its number 2 executive, Jerome Jessup.[19] Revenue dropped to $742 million and the company lost $81.8 million. The company's cash position had dropped to $21.7 million.[20]

type	Private
founded	1984
founders	Dennis Pence Ann Pence
industry	Clothing
products	Clothing, shoes, accessories and home décor
owner	Newtimes Group
homepage	https://coldwatercreek.com/

Coldwater Creek (clothing retailer)

History

From startup to profitability (1984–1986)

Rapid sales growth (1987–2006)

$1 billion mark reached (2007–2013)

2014 bankruptcy

First relaunch (2014–2020)

Second relaunch (2020 and beyond)

References