Charming Charlie

Charming Charlie filed bankruptcy twice - in 2017 and 2019 - before liquidating entirely. The accessories retailer organized stores by color rather than product type, a visual merchandising innovation that attracted customers but didn't create sustainable economics. Private equity ownership (Advent International, then management buyout) loaded the company with debt. When Forever 21 and fast fashion competitors offered similar items cheaper, Charming Charlie's margins collapsed. The company demonstrated that visual merchandising innovation doesn't create moats.