BabyStyle Files for Bankruptcy

BabyStyle, the Los Angeles retailer of baby and maternity products, has filed for bankruptcy after raising more than $146 million from investors.

This is actually a sad story. Looks like they were misguided by their investors who pushed them to open more and more retail stores even after they were reporting huge losses. The loss here is to all their loyal customers. Its really just too hard to have a successful etailer these days especially when competing against the likes of babiesrus, Target and Walmart.

The company is still open for business, and I dont think they will close their site down. You may see heavily discounted items in order for them to raise money and get rid of their inventory.

The company has laid off 14 employees and plans to close six of its 23 stores.