Leading apparel chain The Limited set to file bankruptcy in 2017

Leading women's apparel chain The Limited was noted talking to several sources to explore various options to seek for a financial flexibility for the company. But finally the news was out that the 240-store chain has been struggling with declining traffic at many malls and a surfeit of merchandise on the market, was planning to file for Chapter 11 bankruptcy protection in the first few weeks of the New Year, seeking liquidation.

They were also found sorting out advise from Guggenheim Securities and RAS Management Advisors to help with a debt restructuring and asset sale. Just like Chico's, Ann Taylor and other women's apparel stores, The Limited has been struggling with shifts in consumer behaviour and interest, a greater number of rivals as well as longer store leases.

Limited Stores, founded in 1963 in Columbus, Ohio, was spun off from Victoria's Secret parent L Brands (LB, +0.12%) in 2007 in a leveraged buyout by private-equity firm Sun Capital Partners. In 2010, L Brands, known as Limited Brands until 2013, sold its remaining 25% stake to Sun Capital for roughly $32 million.It has been a difficult year for many mall-based retailers: AĆ©ropostale, Pacific Sun, American Apparel and The Sports Authority are among those to have filed for Chapter 11 bankruptcy protection to either slim down or in the case of Sports Authority, shut down altogether.

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