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Tuesday, Apr 16, 2024

Struggling Teen Apparel Chain Faces Shut Down

Sidecca Inc., a Porter Ranch teen girl clothing retailer with outlets at the Northridge Fashion Center and other local malls, has filed a notice with the state that it will shut down March 31. The company, which sells everything from “rave” themed clothing to novelty key chains, filed a Worker Adjustment and Retraining Notification (WARN) notice Feb. 5 with the state Employment Development Department. Companies that have more than 75 employees must file the notice and inform their staff within 60 days of potential closure. Sidecca has 95 employees at its seven outlets and corporate office, according to the filing. Owner Debra Millman said sales were down but she was trying to avoid closure and only filed the notice because she was legally required to do so. “In order to avoid liability, I had to file it. But we’re working pretty hard to stay open,” she said. “Yeah, we’re in trouble, but we’re not closing.” The company opened its first retail outlet in November 2004 at the Valencia Town Center. Aside from Northridge it also operates at the Burbank Town Center and at malls in Brea, Los Cerritos, Montclair and Santa Anita. The company also operates an ecommerce site. Sidecca offers its teenage girl market everything from a blog with fashion advice to trendy clothes and jewelry. It carries teen brands as well as clothing licensed to carry the images of “The Beatles,” James Dean and other pop culture figures. Its motto is “Where you fit in.” Prices range from about $15 for a shirt to nearly $40 for a pair of jeans. Teen fashion was once considered among the safest markets in the retail industry. From massive back-to-school sales to the highly lucrative summer swimsuit season, retailers knew parents would outfit their children with the hottest trends. But other teen retailers also have struggled since the recession. Wet Seal Inc. of Foothill Ranch, which operates about 500 stores nationwide, has faced dramatic decreases in sales. The company cut 35 jobs in February and two top executives have resigned. “This is an area where parents used to not put a tether in their budgeting. But people aren’t building wardrobes the same way anymore,” said Marshal Cohen, chief retail analyst for the market research firm NPD Group Inc. of New York. Instead, to save dollars, many parents are buying teen fashions at stores such as Target while buying groceries, household items and other products. “It’s much harder to be a niche business these days,” he said. “Lower-price providers are getting the business.”

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