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Crabtree & Evelyn Files for Bankruptcy

Crabtree & Evelyn, the maker of soaps, gifts and toiletries sold in 126 stores in 34 states, filed for bankruptcy protection in New York, citing a decline in consumer spending.

The company, based in Woodstock, Conn., reported $46.2 million in assets and $33.2 million in liabilities in Wednesday's bankruptcy petition.

''We are confident that Chapter 11 gives us the opportunity to restructure the company with a business model that will be sustainable for long-term growth,'' Stephen Bestwick, the retailer's acting president, said in a statement.

Crabtree & Evelyn is wholly owned by Kuala Lumpur Kepong Bhd., a Malaysian company that also owns palm oil and rubber plantations. The company is Malaysia's third-largest palm oil producer.

Retail sales accounted for 56 percent of the Crabtree & Evelyn's $107.5 million in revenue in the fiscal year ended Sept. 30, 2008, it said in court papers. The company had operating losses in each of the past several years and projects it will lose $13.3 million this year, it said.

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Bankruptcies and Liquidations:

Potential Bankruptcies & Liquidation Impact: 1,526 confirmed closures out of about 3,445 stores

Announced Closings

Total Closings: up to 1,544 U.S. stores

Potential Impact of All Announcements to Date: 3,070 closures out of up to 4,989 potentially affected U.S. stores

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