Missouri-based womenswear retailer Soft Surroundings has entered into a restructuring support agreement which allows Coldwater Creek to take control of its direct-to-consumer and e-commerce operations.

The company, which also sells home, shoe and accessories merchandise, says this is one of the strategic steps it takes to “secure stronger future”. To implement the agreement, it has filed voluntary petitions for reorganization in the bankruptcy court.

Soft Surroundings has also secured $18 million in debtor-in-possession financing from Gordon Brothers, subject to court approval, to continue its business and meet its financial obligations, including the timely payment of employee wages and vendor payment for goods and services.

“Over the past year, we have taken significant steps to fortify our financial standing including rightsizing our business to better match current market conditions,” said Bridgit Lombard, executive chair of Soft Surroundings.

 “This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners.”