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Destination Maternity Files for Chapter 11 Bankruptcy

Destination Maternity Corporation filed for Chapter 11 bankruptcy on Monday in Delaware under docket number 19-12256.

The large maternity-wear retailer owns approximately 458 U.S. stores comprised of 362 Motherhood Maternity Stores, 26 Pea in the Pod stores, and 70 Destination Maternity stores.

The Debtor’s prime demographic is diminishing as generational shifts are effecting the industry. Specifically, the U.S. birthrate has dropped to a 32-year low, according to the U.S. Department of Health and Human Services. This generational shift reflects that Millennials are having children later, or not at all.

CNBC reports that other baby-related retailers are also feeling the pinch of this generational shift, including Huggies diaper-maker Kimberly-Clark and baby oil and bubble bath maker Johnson & Johnson.

The Debtor is working with Kirkland & Ellis to either find a buyer or proceed with a liquidation.

COPYRIGHT © 2020, STARK & STARKNational Law Review, Volume IX, Number 296



About this Author

Thomas S. Onder, Stark Stark Law Firm, Retail Litigation Lawyer, Commercial Issues Attorney

Thomas S. Onder is a Shareholder and member of the Commercial, Retail and Industrial Real Estate, Litigation and Bankruptcy & Creditors’ Rights Groups of Stark & Stark. Mr. Onder is a member of the International Council of Shopping Centers (“ICSC”) and concentrates his practice in the area of commercial litigation, specializing in commercial landlord...