Coldwater Creek (clothing retailer)
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1984 |
| Founder | Dennis Pence, Ann Pence |
| Headquarters | Hingham, Massachusetts , United States |
Key people | Jill Dean (President and CEO, as of 2013) |
| Products | Women's clothing, accessories, footwear, home furnishings |
| Owner | Newtimes Group (since 2020) |
Number of employees | 5,839 (2014) |
| Website | www |
Coldwater Creek is a U.S.-based retailer focused on women's clothing, accessories, footwear, and home furnishings, catering to misses, petite, and plus-size customers.
Early years and achieving profitability (1984–1986)
Established in 1984 by Dennis and Ann Pence in Sandpoint, Idaho, Coldwater Creek started as a direct mail operation funded by $40,000 in personal savings. The initial catalogs were created internally, drawing on Ann Pence’s background as a copy director at Macy's. By 1986, the business had become profitable with a workforce of fewer than ten employees.
Period of rapid expansion (1987–2006)
By 1990, Coldwater Creek was distributing millions of catalogs utilizing both proprietary and leased mailing lists. Early 1990s investments in technology and leadership facilitated growth; revenues increased from $11 million in 1991 to $18.8 million in 1992. The company broadened its catalog portfolio with the introduction of Spirit of the West in 1993 and Ecosong in 1994, alongside launching its own branded credit card.
From 1994 to 1996, the company made substantial investments in IT systems, distribution centers, and customer service call centers, including a new facility located in Coeur d'Alene, Idaho. The first brick-and-mortar retail location was also opened in Sandpoint during this timeframe. Sales reached $75.9 million in 1995 with earnings of $5.6 million. In 1996, revenue surged by 88.5% to $143.1 million with net income rising to $7.7 million. During this period, Coldwater Creek introduced Milepost Four, a men's catalog which was later divested.
In 1997, Coldwater Creek went public through an initial public offering that raised $37.5 million while the founders retained a 75% stake. That year, international sales made up approximately 10%, primarily from markets in Japan and Canada. Revenue increased to $246.7 million with net income of $11.7 million. By 1999, annual sales reached $328.3 million and net income stood at $13.7 million excluding divested units. The company also launched the Natural Elements catalog and set a goal to capture 5% of the U.S. online women's apparel market by fiscal year 2000.
Growth continued with the addition of new call centers and distribution hubs in Parkersburg, West Virginia. Leadership changes included Georgia Shonk-Simmons assuming the CEO role in 2001 before Dennis Pence returned to lead again in 2002. The retail store count expanded from 41 locations in 2002 to 114 by 2004.
In 2003, sales totaled $473.1 million with profits of $9.15 million; these figures rose to $518.8 million and $12.3 million respectively in 2004. A secondary stock offering raised $41 million that year to fund further expansion efforts.
Sales increased by 13.8% to $590.3 million in 2005 with net earnings of $29.1 million. To increase direct sourcing from 15% to 30%, Coldwater Creek established an office in Hong Kong late that year and enlarged its Parkersburg distribution center by an additional 350,000 square feet.
The company experienced substantial growth again in 2006 as sales jumped 32% to $779.7 million with net income reaching $41.6 million. Additionally, it launched six pilot spa locations branded as Coldwater Creek ~ The Spa as part of its strategy to diversify product offerings and services.
Achieving the billion-dollar milestone (2007–2013)
In October 2007, Dennis Pence stepped down as CEO and was succeeded by Daniel Griesemer. That year marked the company’s first revenue exceeding $1 billion, growing by 35.2% to reach $1.04 billion with net income of $55.3 million—the final profitable year while publicly traded. The retail footprint expanded to 306 stores from the previous year's total of 239 locations, aiming for a target range of 500–550 stores.
Under Griesemer’s leadership in 2008, revenue peaked at an all-time high of $1.15 billion but recorded a net loss of $2.5 million—the company’s first annual loss since its inception in 1985. Despite this setback, Coldwater Creek maintained a robust balance sheet with cash reserves totaling $81 million and implemented cost-cutting measures including reducing selling, general & administrative expenses by $30 million and scaling back capital expenditures entering fiscal year 2009.
Dennis Pence returned as CEO in September 2009 with the goal of restoring profitability. Revenue for that year remained at approximately $1.04 billion but net losses widened significantly to $56 million. The downward trend persisted into 2010 when revenue declined to $981 million accompanied by a net loss of $44.1 million. Leadership adjustments included Jerome Jessup replacing Georgia Shonk Simmons as president and chief marketing officer.
In 2011, revenue fell further to $773 million while net losses increased substantially to nearly $99.7 million. To improve liquidity, Coldwater Creek secured a loan worth $65 million from Golden Gate Capital in July 2012. Revenue dropped again to $742 million that year alongside losses amounting to $81.8 million; Dennis Pence retired once more and Jill Dean was promoted to president and CEO.
Despite the leadership transition, challenges persisted throughout 2013 as the company announced restructuring plans aimed at reducing expenses by $20–25 million and eliminated close to one hundred positions including its second-highest executive role. Revenue stabilized at around $742 million but losses remained at approximately $81.8 million while cash reserves dwindled to just over $21 million.
2014 bankruptcy
On April 11, 2014, Coldwater Creek initiated Chapter 11 bankruptcy proceedings, disclosing assets valued at $278.5 million against liabilities totaling $361.3 million. The company indicated that it had exhausted all potential options but was unable to find a purchaser or secure financing to maintain its business activities. At that point, the workforce included 339 employees at the corporate office and an additional 5,500 staff members at other locations. The plan involved liquidating inventory and assets, with a complete shutdown of operations anticipated by early summer 2014.
First relaunch (2014–2020)
In June 2014, Sycamore Partners, known for owning brands such as Talbots and Nine West, acquired Coldwater Creek’s intellectual property through CWC Direct LLC and relocated the headquarters to Hingham, Massachusetts. The brand was reintroduced on November 3, 2014, focusing on a digital-first and catalog-based retail model. By early 2018, Coldwater Creek had opened a physical retail store in Burlington, Massachusetts, marking its first brick-and-mortar presence in three years. As of February 2020, the company operated thirteen stores across the United States. On July 20, 2020, Comenity Bank, the issuer of Coldwater Creek’s credit card, declared that all purchases made after July 6 would be considered final sales without returns. Subsequently, the company transitioned back to an exclusively online retail format, closing all physical locations due to the COVID-19 pandemic, noting that most stores had not resumed operations following initial closures.
Second relaunch (2020 and beyond)
In September 2020, Hong Kong-based procurement company Newtimes Group purchased Coldwater Creek’s inventory and intellectual property for $12.2 million. This acquisition represented a deliberate effort to restore the brand’s presence in the market. The updated Coldwater Creek website was launched on December 12, 2020, with intentions to bring back the catalog and concentrate on expanding e-commerce capabilities and international reach under Newtimes Group’s management.