Aerosoles, a women’s footwear brand, has filed for Chapter 11 bankruptcy protection, and will close 74 of it 78 stores to focus on its e-Commerce, wholesale and international businesses.
Like many retail casualties before it, Aerosoles attributed its bankruptcy to declining mall traffic, industrywide markdowns and a shift toward online shopping, according to a court filing.
The footwear brand plans to maintain four flagship stores in New York and New Jersey, and expects to complete the restructuring within approximately four months.
Aerosoles certainly needs the outside help if it wants to restructure — the company listed assets of $10 million to $50 million and liabilities of $100 million to $500 million.
The retailer expects to obtain approval for immediate relief that would allow the company to make certain necessary payments to employees and suppliers that will permit it to continue operating without interruption during the restructuring, according to the filing.
Private investment firm Palladin Consumer Retail Partners is the majority owner of Aerosoles, marking yet another private equity-backed bankruptcy in 2017 that already includes brands such as Payless ShoeSource, Gymboree, Wet Seal, True Religion, The Limited and Vitamin World.