Clothestime

Clothestime

Company type	Public (until 1997), then Private
Industry	Retail (Women's Apparel)
Founded	1974
Founder	Raymond DeAngelo, John Ortega II
Defunct	2004
Fate	Bankruptcy and closure
Headquarters	United States
Area served	United States
Key people	Raymond DeAngelo (co-founder, former CEO), John Ortega II (co-founder, former CEO and chairman), Norman Abramson (former president and COO)
Products	Women's apparel, junior fashion segment

Clothestime was a U.S.-based discount retailer specializing in women's apparel, particularly known for its presence in the junior fashion segment. Established in 1974 by business partners Raymond DeAngelo and John Ortega II, the company grew to operate more than 500 stores across the country during its height.

The brand promoted the slogan "always in fashion, never full price," and provided customers with fashionable, brand-name items priced between 30% and 70% below suggested retail values, alongside its own private-label lines. Targeting budget-conscious shoppers, Clothestime strategically located most of its outlets in affordable strip mall locations.

By late 1995, the retailer managed 550 stores but encountered financial difficulties that prompted plans to close or divest roughly 140 locations, signaling a shift in corporate strategy and adapting to evolving market dynamics.

History

During the early 1970s, Raymond DeAngelo and John Ortega II initially sourced apparel from flea markets, supplying Southern California retailers. They transitioned from this wholesale approach to opening their first retail store in 1974, which eventually expanded into a chain of outlets.

Clothestime completed its initial public offering in 1983 and experienced rapid growth, increasing from 98 stores to 263 by 1987. Following a $2.2 million loss in 1988, the company refocused its marketing efforts towards professional women aged over 25. This repositioning spurred renewed expansion by 1992 with an ambitious goal of reaching 1,000 stores by the year 2000; however, growth momentum decelerated by 1993.

In January 1995, co-founder and CEO Raymond DeAngelo stepped down after holding leadership roles since the early 1980s. By December of that year, Clothestime filed for Chapter 11 bankruptcy protection and announced intentions to shutter approximately 140 of its total 550 stores.

In January 1997, ongoing financial challenges led to the resignations of key executives John Ortega II (chairman and CEO) and Norman Abramson (president and COO). Later that year in September, a bankruptcy court approved a reorganization plan which resulted in the cancellation of Clothestime’s publicly traded stock and conversion to a privately held entity.

The company invested $8 million in a marketing campaign in 2002. The following year, Clothestime was purchased by JM Associates, an apparel manufacturer based in New York aiming to rejuvenate the brand. Despite these efforts, disputes with creditors culminated in an involuntary bankruptcy filing in June 2003 due to unpaid debts exceeding $700,000.

Operations were terminated in early 2004. The bankruptcy proceedings concluded in 2012 after Clothestime settled nearly $2 million owed to creditors. As of 2013, the firm still had outstanding tax liabilities amounting to close to $2.9 million owed to the state of California.