Aerosoles, leading women’s shoes brand name, and other subsidiaries of moms and dad business AGI HoldCo Inc. submitted to restructure under chapter 11 of the U.S. Bankruptcy Code.
An important part of the business’s restructuring is a considerable decrease in the number of retailers it operates.
Aerosoles operates 78 retail areas in 20 states, mainly in lease-based shopping center places, way of life centers, street areas and outlet centers. It prepares to close 74 of them.
The company plans to maintain 4 flagship stores in New york city and New Jersey.
The Edison, NJ-based business has actually currently begun preparing store closing sales and is seeking approval from the Personal bankruptcy Court to proceed with those sales.
The company’s difficulties began in April 2016, when it sole item sourcing representative in Asia immediately stopped providing services. While the company worked rapidly to discover a new sourcing agent, it lost clients throughout all of the affected company lines due to lack of inventory, quality assurance problems and hold-ups in product delivery, the business stated in its insolvency filing.
These concerns continued through the fall 2016 and spring 2017. During that time frame Aerosoles closed 30 other places.
“By improving our financial structure and right-sizing our retail footprint, we will have the ability to refocus our company efforts on the execution of our turnaround method,” stated Denise Incandela, the company’s interim CEO.
The company expects to complete the restructuring within roughly four months. The rearranged company will focus its efforts on the ecommerce, wholesale and worldwide services that have actually continued to get strength over the last few years.
Aerosoles’ legal consultant in connection with the restructuring is Ropes & & Gray LLP. Berkeley Research Group LLC works as its restructuring advisor and Piper Jaffray & & Co. serves as its investment lender for the restructuring. Hilco Merchant Resources is assisting on store closings.