Being that Chadwicks of Boston is one of the nation’s largest mail order companies for women’s clothing, it was quite a surprise when their parent company filed for bankruptcy in June 2011.
During the following several months, a lot of things have happened. So what does this mean for those who have the Chadwicks credit card?
Fate of brand unknown?
Initially when Chadwicks’ parent company (Boston Apparel) filed for bankruptcy, they did chapter 7. Under chapter 7, a company goes completely kaput – they stop operating and liquid everything.
However that eventually was changed to chapter 11 – a form of bankruptcy where the business continues, but the debts are re-organized.
A company called Distinctive Apparel Inc. scooped up Chadwicks’ assets. So far, I have been unable to find evidence to support the brand (as it currently stands) will remain in business under the new company. What I’ve seen actually hints the opposite, since their warehouse operations have closed.
What happens to your credit card?
Obviously if the Chadwicks brand is discontinued, then the operations for their credit card division will probably be wound down also.
If this happens, from my experience when a store goes out of business, the credit card’s limit is cut to whatever the current balance is and the customer can continue paying down the balance on whatever the old terms were (remember they haven’t said whether this will happen or not – I’m just speculating).
Ironically the Chadwicks credit card application is still active on their website, which I find a bit strange being that I am finding recent complaints online which are alleging their orders are not being filled and they cannot reach customer service.
Whether those allegations are true or not, I do not know. But I do know one thing and that is definitely not a good idea to apply for their card right now!
And if you do have the card, keep a careful eye on what unfolds (and please update me in the comments below). That being said, the Chadwicks Gold Card is issued and managed by a totally separate company (World Financial Network National Bank) so I don’t think you have anything to worry about in terms of whether you will be able to reach cardholder customer support, pay your card’s bill, etc.
Written Nov 2011