Elizabeth Lippman for The New York Times Delaney Parker wearing a dress from Delia’s last spring.
The company has been soliciting interest from buyers including private equity firms, these people said. It is uncertain whether a deal will come together, and Delia’s is considering other options, including raising capital. The company has a market value of about $60 million.
Delia’s has faltered in recent years in an increasingly crowded teenage market, a place where getting trends right and prices low are essential. On the inexpensive side, fast-fashion stores like H&M and Forever 21 sell runway-inspired jeans and minidresses for the price of a pair of movie tickets.
More expensive retailers, like Abercrombie & Fitch, have huge marketing muscle. And department stores like Kohl’s and Macy’s have started going after teenagers by selling exclusive lines from celebrities. Also, the suburban malls where many Delia’s are located have struggled with traffic throughout the recession. In January, Anchor Blue, another retailer for teenagers located primarily in suburban malls, said it was going out of business.
“Delia’s has about 115 mall-based stores in 33 states. Revenue for the third quarter ended October 30, 2010, were $61 million. It lost $22 million through the first nine months of the 2010 fiscal year, more than double its loss for the same period a year before.
Delia’s has faltered in recent years in an increasingly crowded teenage market, a place where getting trends right and prices low are essential. On the inexpensive side, fast-fashion stores like H&M and Forever 21 sell runway-inspired jeans and minidresses for the price of a pair of movie tickets.
More expensive retailers, like Abercrombie & Fitch, have huge marketing muscle. And department stores like Kohl’s and Macy’s have started going after teenagers by selling exclusive lines from celebrities. Also, the suburban malls where many Delia’s are located have struggled with traffic throughout the recession. In January, Anchor Blue, another retailer for teenagers located primarily in suburban malls, said it was going out of business.
“Delia’s has about 115 mall-based stores in 33 states. Revenue for the third quarter ended October 30, 2010, were $61 million. It lost $22 million through the first nine months of the 2010 fiscal year, more than double its loss for the same period a year before.
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