The Walking Company Files Second Bankruptcy In 10 Years
Shoe seller The Walking Company has filed for Chapter 11 protection, for the second time in 10 years. The retailer — which operates 208 stores in the U.S., including the FootSmart and Big Dogs Sportswear banners — said in a release that current shareholders have committed to invest $10 million in new equity. Its lender, Wells Fargo, has provided a $50 million bankruptcy loan. The commitments, however, are contingent on the retailer “conforming their lease portfolio to market rents,” CEO Andrew Feshbach said in a court filing. The company had already sought concessions from landlords before filing for bankruptcy, with limited success. Since filing this week, the retailer has already filed motions to reject five leases nationally, according to Feshbach. “Meanwhile, rent reduction negotiations are ongoing with landlords at virtually all of the [retailer’s] remaining store locations,” he said. Walking Company, which filed in federal bankruptcy court in Delaware, expects its reorganization plan to be confirmed by the court in about 90 days. The company went into court with more than $40 million in outstanding loans and $11.7 million in bond obligations, Feshbach said. Read more at Retail Dive.
