Auburn-based Peekay Boutiques, best known as the parent company of the Lovers chain of adult retail stores, has filed for Chapter 11 bankruptcy.
The company sells lingerie, sexual health and other bedroom products at 46 locations under a variety of brands: Lovers, Christals, A Touch of Romance and ConRev.
Lovers stores in particular are fairly ubiquitous around the Puget Sound area, but the company has been working to restructure its balance sheet to pay its debts since mid-2015. Peekay underwent multiple initiatives that year to do so, including an initial public offering of stock; that plan was abandoned in 2016.
Apparently, those measures weren’t enough, as records show the company’s debts ballooning to almost $52 million at the time of its Chapter 11 filing. Peekay’s debtors, in contrast, estimate the company’s assets between $10-$50 million.
The company, however, appears to remain hopeful to attract a buyer to keep business alive. A statement from CEO Lisa Berman claims Peekay is exploring e-retail as a more viable option for reaching customers.