Crabtree firm in bankruptcy move

Crabtree plans to close some of its 126 US stores

The Crabtree & Evelyn business in the US, which specialises in premium natural skincare products, has filed for Chapter 11 bankruptcy protection.

The firm has been hit by falling sales and rising losses. It said it plans to close some unprofitable stores.

Members of the Crabtree & Evelyn Group outside the US, including its UK arm, are not affected by the filing.

Chapter 11 gives businesses time to rearrange their finances while continuing to trade.

Crabtree & Evelyn's business remained strong in markets across Europe, the Middle East and Asia, said Catie Callender, the group's managing director for those regions.

"There will be no change to our operations as a result of the Chapter 11 filing in the US."

Crabtree & Evelyn has 126 stores in 34 US states, employing 950 people.

Its US acting president Stephen Bestwick said a decline in the housing market, and tightening of credit markets, had reduced consumer discretionary spending.

He added that management changes had resulted in lower sales to wholesale accounts.

In a court filing, the firm said it planned to close some stores and would try to renegotiate leases on others.