BUSINESS

Kitson, boutique for young starlets, is closing all 17 stores

Kitson, the Los Angeles boutique chain once frequented by rising starlets, is going out of business.

The company said Thursday that it is closing all 17 of its stores in California, Oregon and Nevada. Its online shop will also shut down.

James Wong, Kitson's chief restructuring officer, said in a statement that Kitson was talking with "interested parties" to preserve the brand.

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Kitson's website advertised prices Thursday of 30% to 50% off on all items. Going-out-of-business sales at all retail stores, which started Thursday, will be handled by liquidators Gordon Brothers Group and Hilco Merchant Resources, the company said. 

Kitson founder Fraser Ross and other company executives were not immediately available for comment.

It's a dramatic end for a chain that first opened on designer-studded Robertson Boulevard in 2000. Kitson made a name for itself as the backdrop for paparazzi shots of young celebrities such as Lindsay Lohan, Paris Hilton and the Kardashian clan.

But the company has run into financial troubles in recent years.

In 2013, the company got a $15-million credit line from Salus Capital Partners to refinance its debts and provide working capital.

Then this summer, Spencer Spirit Holdings Inc., which owns the Spirit Halloween costume stores and Spencer's novelty gift shops, agreed to extend a loan to Kitson to pay down the loan with Salus and stave off the bankruptcy that was likely to follow, according to the Wall Street Journal.

Follow Shan Li on Twitter @ByShanLi

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