Retailers to Reorganize Under Chapter 11

DALLAS Gadzooks and Garden Ridge have filed for bankruptcy protection this week.

Gadzooks said it filed for Chapter 11 protection this morning “to provide time to complete the reorganization of its core business around 252 stores chosen to strengthen its market position in the junior apparel business.”

The Carrollton, Texas-based retailer is closing 125 stores; 31 locations are already in the process of being liquidated. In July the company had 424 stores in 41 states.

Last summer the store moved away from selling boys’ and girls’ clothes to an “all-girl” format that sold clothing, accessories and shoes for girls 16 to 22 years old. The shift was promoted in an August print campaign from The Richards Group in Dallas, which won the account in January 2003. Gadzooks spent $3 million on media last year through November, according to Nielsen Monitor-Plus.

In addition, Houston-based Garden Ridge filed for Chapter 11 yesterday, which it did “with the primary goal of renegotiating certain of its store lease agreements and certain other arrangements,” the company said in a statement.

Fogarty Klein Monroe in Houston became the craft chain’s lead agency in January 2003. The client spent $10 million on media last year through November, according to Nielsen Monitor-Plus. It has 44 stores in 13 states and said it has plans to close four.