Shoes For Crews enters Chapter 11, secures restructuring finance

(Source: Shoes For Crews)

Slip-resistant footwear retailer Shoes For Crews has filed for Chapter 11 relief to enable its continued operation in the US.

The company is planning to enter into a stalking horse asset purchase agreement with its first lien secured lenders to sell the business. The firm is seeking the highest or otherwise best bid for its assets and expects the sale to be completed in two months.

Shoes For Crews has also entered into an agreement to receive $30 million of debtor-in-possession financing. Once approved by the court, the fund will allow the retailer to continue operations in the ordinary course during the Chapter 11 process.

“Today’s announcement marks an important step forward for Shoes For Crews that will position us financially to continue investing in our industry-leading products and delivering for our valued customers well into the future,” said president and CEO Donald Watros. 

“We are confident that with a stronger balance sheet and the strong support of new ownership, Shoes For Crews will be on track to continue in our mission of creating a safer workplace by continuing to develop and provide the leading slip-resistant footwear to bring every employee home safely.”

The Chapter 11 process does not affect the company’s international entities in Canada, Europe, the Pacific, and Asia.

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