Crabtree & Evelyn files Chapter 11 bankruptcy to clean up its act
Filed under: Company News
One would think that people would always need soap, but maybe not the hoity-toity scented soaps and lotions – as soap and lotion seller Crabtree & Evelyn has filed for bankruptcy protection. Crabtree & Evelyn is owned by Kuala Lumpur Kepong (KLK), which is a publicly traded Malaysian firm. However, Crabtree & Evelyn Holdings is a British company. The company was founded in 1973.The retailer has seen sales drop during the past 10 months, mainly due to fewer customers shopping at malls, which is where many of Crabtree & Evelyn's stores are located (including Copley Place in Boston, Watertower Place in Chicago, and Embarcadero Center in San Francisco).
Unfortunately for Crabtree & Evelyn, it joins a growing list of failed retailers that includes Steve & Barry's, Eddie Bauer, Filene's Basement, Linens 'N Things, Mervyns, and Circuit City. In the company's court filing, Crabtree & Evelyn reported $46.2 million in debt with just $31.7 million in assets as of March 31. It is reportedly, asking permission to seek a $40 million loan from KLK to help in its restructuring.
Along with filing for bankruptcy protection, Crabtree & Evelyn plans on closing some of its under-performing stores. The company's change in management, which resulted in a number of "strategy shifts" has absorbed a lot of the blame for the drop in sales. The main hope now is for the company to improve its operations during its time in bankruptcy. The company's acting President Stephen Bestwick said he hopes the company can continue its "tradition of English-style elegance."
That said, I believe it was this "tradition" that got Crabtree & Evelyn into trouble in the first place. It is good that the company wants to hold on to its "elegance," but doing so has forced it to ask its customers to pay exorbitant amounts of money for travel-sized packages of soap and lotion. Yes, soap is a necessity, but who wants to pay $20 for 10 ounces of Spider Lily Shower Gel? Crabtree & Evelyn performed well when people had a little less to worry about regarding their purse strings, but are we truly surprised that this upscale retailer is having trouble today?
How can Crabtree & Evelyn emerge from bankruptcy a stronger entity? First things first, charge less for the product. Second, moving away from the mall-based plan would be a good move – remember, tough economic times bring less people to the mall. Finally, offering fewer products might produce savings. Crabtree & Evelyn not only offers soaps and lotions, but it also sells Vera Bradley bags and wallets along with LaSource, India Hicks Island Living, and Naturals products – all of which carry a rather healthy price tag. If people have a hard time shelling out the cash for the soaps and lotions, I don't see them jumping to spend hundreds of dollars on wallets and the like. There are always people willing to spend that sort of money, but in this environment, many more will walk right past the store.
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Reader Comments (Page 1 of 2)
7-01-2009 @ 8:31PM
cyaml said...
They are too expensive for me. Even when I had money I wouldn't buy anything there.
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7-03-2009 @ 10:06AM
alex said...
I'm with you on this issue. I learned to scrimp a little, a long time ago. The now defunct Fel's Naphta Soap got you clean, all right; it was just a little rough on the skin. You don't need to move but a little way up the scale to get into some good feeling, hardworking soap list to stay clean and to smell nice. And, did mention, to also save major bucks?
7-01-2009 @ 10:14PM
JUDY said...
I AGREE!!! THERE IS NOTHING WRONG WITH BUYING CHEAPERS SOAPS AND BODY LOTIONS..EVEN THOSE AT THE 99 CENT STORE!!! A PERSON I KNOW SPENDS $12.00 ..$12.00!!! FOR HAND SOAP!! I JUST KEEP MY NICE CERAMIC DISPENSER AND REFILL IT WITH IVORY LIQUID!!! I USE DEODORANT SOAP AND GOOD OLD FASHIONED TOOTHPASTE.. THE ITEMS SOLD IN THESE STORES ARE WAY TOO OVERPRICED!!! IT'S THE SAME WITH CASWELL-MASSEY..WAY TOO OVER-PRICED!! J.
7-01-2009 @ 9:09PM
leslie said...
Their mistake was playing to the mall culture in the first place. They sell an upscale product and most malls cater to a far more middlebrow clientele.
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7-01-2009 @ 9:10PM
hillsamurai said...
My wife and I went to a store in London in the 1980's and they were very expensive even then.
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7-01-2009 @ 9:20PM
mike said...
WHO?
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7-02-2009 @ 5:48PM
teltech54 said...
Never even heard of them
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7-01-2009 @ 9:32PM
Alison said...
I managed a C&E store for several years and was there when the "change in management" occurred. A new VP of sales replaced a highly respected gentleman (he went to the competition) and was a complete disaster of bullying, repulsive and frankly, silly tactics and retail trickery. C&E puts out a product that costs a great deal to manufacture and is worth the cost. Between me and the product, we made hundreds of mothers and grandmothers feel pampered, pretty and deserving of a $5.00 high quality and far more lasting bar of soap. Customer service is (or was) C&E's strongest asset. One hopes that the company will let us little selling ladies do what we do best in our way, the way that worked.
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7-01-2009 @ 9:46PM
Christine said...
I love Crabtree & Evelyn. Their lotions are the only ones I have found that do not interfere with my breathing. I have a rare lung disease and their lotion is the only one I have found that does not make me have to put on my oxygen. It also has a wonderful scent and great on my skin. I do sometimes cringe at the price, but it is well worth the cost for me.
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7-01-2009 @ 9:53PM
ed11362 said...
BAILEM OUT OBAMA
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7-01-2009 @ 10:05PM
Mitchell said...
Why pay the price of that soap.May smell nice,after that it is still soap.I been useing regular soap for 50 years,most will get you clean.
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7-01-2009 @ 10:14PM
JUDY said...
MITCHELL.I AGREE!!!.. ALOT OF BRANDS ARE VERY OVER PRICED..IT'S LIKE MAKE-UP..HAIR COLORING..EVEN CLOTHING!! YOU PAY FOR THE NAME AND THE SLACKER BUSINESS PEOPLE BEHIND IT!! ALL MY BEST..JUDY.
7-01-2009 @ 10:45PM
Tess said...
I work at C&E and just found the news out today like everyone else. The people that work in the stores are by no means hoity-toity, we have families to feed just like everyone else. Yes a bar of soap may cost $6, but go to a box store and you'll end up needing 5 bars compared to our one. C&E's products are higher quality, but you get what you pay for. I love my job and believe in the product, otherwise I wouldn't be working there. Just come in and you will all change your minds. Thank you.
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7-01-2009 @ 10:44PM
Judie Hamilton said...
Specialty stores are in trouble, especially those whose merchandise is way overpriced.
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7-01-2009 @ 10:53PM
GB said...
Too bad, I really liked their stuff. It was a little pricey but they make great products.
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7-01-2009 @ 11:21PM
Charles Carter said...
15 million unemployed and businesses, cities and states are still laying people off. They try to tell us that things aren't bad because not AS MANY each month are being laid off and a few thousand found jobs. Yippee.
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7-01-2009 @ 11:30PM
Carolyn said...
I feel sorry for anyone who hasn't experienced a $6 soap that lasts 10 times longer than a 99cent soap. I swear! They do! I've bought their products for over 20 years and am very sad to hear the news. Not to mention, they carry natural lines which are paraben and sulphate free, which surprisingly most of the competition doesn't. They're biggest challenge is that people see them as an old fashioned store and they're not at all ~ very much the opposite. Their products are very cutting edge.The store near me that is closing is having big sales and discounts, so everyone should visit and bid them farewell and pick up some "hoity-toity" soap.
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7-01-2009 @ 11:36PM
John said...
Over priced JUNK.
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7-02-2009 @ 12:52AM
steve said...
C&E used to be freebies at Foxwoods and other casinos. Good stuff! Too bad their marketing isnt working out.
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7-02-2009 @ 2:38AM
Lynn Manieri said...
I don't like critical comments at this time of our economy, but one has to get real here. They are a good company, but with the big box stores and other discount stores, you can find products selling for 5 that they sell for 30. People so inclined to save money are doing just this. There is a misconception that the weathly just keep buying, while in essence it sounds logical, but it is actually the opposite. Who in their correct mind would spend 30 for the identical product at a reduced price? So, there you have it. There are many other stores falling in this category. These people will not be the last to fall.
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