NEW YORK - Clothing retailer Body Central Corp Friday announced that it is going out of business and closing all its 265 stores, warehouse and headquarters by Sunday evening, according to an attorney for the company.

The closure announcement came just two days after the company had warned that it might file Chapter 11 bankruptcy .

"The chain's 265 stores are running "aggressive promotional sales through Sunday," Gardner Davis, an attorney representing the Jacksonville-based clothing stores chain, said on Friday afternoon.

The four-decade-old company's headquarters and warehouse were closed Friday, he said.

The company's debts included $18 million in secured debt and a "significant" amount in trade debt and obligations, according to Davis.

Now, the company is attempting to raise funds by having massive clearance sales over the weekend.

Its merchandise is just about the only thing the store has to sell. It leases all of its locations, as well as its corporate headquarters.

Davis said the company had sought to reorganize its business, but "simply couldn't raise the capital."

"It's tragic that the company's 2,500 loyal employees are losing their jobs," said Davis..

About 185 of those employees worked at the company's headquarters on Powers Avenue. A few congregated in front of the tan brick building, talking and hugging each other before leaving Friday afternoon.

The multi-channel, specialty retailer, had on Wednesday announced that it is experiencing significant liquidity challenges and has taken several steps to identify and evaluate potential strategic and financial alternatives.

These alternatives may include and are not limited to the possibility of a Chapter 11 bankruptcy filing or an insolvency proceeding, the company had announced in a statement.

On January 6, the Company had received a notice of default from the holders of the Company's outstanding $18.0 million in aggregate principal amount of subordinated secured convertible notes issued June 27, 2014, alleging that the company is in default under the Notes.

An event of default under the Notes may result in an event of default under the Company's senior credit facility. .

Ben Rosenfeld, President and Chief Executive Officer, stated, "While the company has made significant reductions in expenses and reduced excess inventory levels, our top line remains challenged by both the overall market environment and the transition time required to complete the merchandise transformation that began in the latter half of 2014."