Mall Chain Body Central to Close 265 Stores, Fire 2,500 Workers

Body Central Corp., the beleaguered women’s clothing chain, is closing all 265 of its stores and firing 2,500 employees as it winds down the business through a state process instead of a typical federal bankruptcy.

Stores will run sales through the weekend and close Sunday night, said Gardner Davis, a lawyer at Foley & Lardner LLP who represents the retailer. Body Central, based in Jacksonville, Florida, said earlier today that it would embark on the state process, known as an assignment for the benefit of creditors. In a separate filing, it said lender Crystal Financial terminated its $17 million credit line, leaving Body Central without a source of revolving debt.