Tag Archives: retailer

Shoe Retailer Aerosoles Files Ch 11; Closing 74 Shops

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.

Clothing Retailer Real Faith Restructuring through Ch. 11

Seeking to Decrease Debt by over 75% or $350 Million through Personal bankruptcy Filing; Cancel 18 Store Leases

Denims seller True Religious beliefs Garments Inc., filed a voluntary Chapter 11 petition in the United States Insolvency Court and expects to obtain verification of its pre-arranged reorganization plan in 3 to 4 months.

The Los Angeles-based merchant has protected financier support for a thorough monetary recapitalization from a substantial majority of its loan providers and its sponsor, TowerBrook Capital Partners.

The company plans to cut its financial obligation by over $350 million and transform it into the significant bulk of the restructured company’s equity. As part of the plan, True Faith is looking for to cancel leases on 18 shops in a few of the toniest markets in the country, consisting of primarily street-front shops.1122 Third Ave., New York, NY
1604 Walnut St., Philadelphia, PA 19103
513-515 Broadway, New york city, NY
863 Broadway, New York, NY
The Shops at Columbus Circle, New york city, NY
644 Collins Ave., Miami Beach, FL
Bellevue Square, Bellevue, WA
119 Newbury St., Boston, MA
3838 Cross Creek Road, Malibu, CA
Kenwood Towne Centre, Cincinnati, OH
Broadway Plaza, Walnut Creek, CA
Montgomery Shopping mall, Bethesda, MD
Northpark Center, Dallas, TX
14 Wall St., New york city, NY
Short Pump Town Center, Richmond, VA
5233 Alcoa Ave., Vernon, CA
Town Center at Boca Raton, Boca Raton, FL
Southlake Town Square, Southlake, TX

The reorganization plan provides for complete payment of claims of Real Religious beliefs’s trade financial institutions, that includes continuing landlords.

“After a cautious review, we are taking an important step to decrease our debt, reinvigorate True Faith’s renowned brand and place the business for future growth and success,” stated John Ermatinger, CEO of Real Religion. “I am likewise happy to announce that year-to-date adjusted EBITDA through May at $7.1 million is up 95% versus in 2015. This enhanced efficiency will allow us to participate in the next stage of our recapitalization process with confidence as we continue to perform versus our strategic plan and drive the business forward.”

Globally, the business has 140 Real Religion and Last Stitch retailers and over 1,900 workers. For the ended Jan. 28, 2017, the business reported total possessions of $243.3 million against $534.7 million of liabilities.

For the 12 months ended then, the company produced $369.5 million of net revenue and published a net operating loss of $78.5 million.

Like numerous other nationwide merchants such as Quicksilver, Pacific Sunwear, American Apparel, Aeropostale, and BCBG, to name a few, the company has been adversely impacted by a macro consumer move far from brick-and-mortar to online retail channels, among other factors, leading to current losses, inning accordance with True Religious beliefs CFO Dalibor Snyder in bankruptcy court filings.

In addition, the premium denim market section of the fashion industry where the business operates has actually been in decline over the last several years, compounding the negative effect on the business’s sales.

As an outcome, over the previous several years, the business has strongly cut costs and taken other internal restructuring measures, consisting of 3 reductions in force and a number of closures of underperforming shops, and explored lots of alternatives to loosen existing liquidity.