Aerosoles files Chap­ter 11

Shoes & Accessories - - The Month That Was -

The US based footwear brand has de­cided to fill Chap­ter 11 of the US Bank­ruptcy Code. The com­pany plans to close most of its stores and fo­cus on its whole­sale, e-com­merce and in­ter­na­tional busi­nesses, be­com­ing the lat­est casualty in the strug­gling U.S. re­tail sec­tor. Denise In­can­dela, Aerosoles In­terim CEO com­mented: “For nearly 30 years, Aerosoles has proudly of­fered con­sumers stylish and com­fort­able footwear at a great value. This re­struc­tur­ing will en­able Aerosoles to be­come a stronger, more vi­brant brand, and po­si­tion the com­pany for fu­ture growth”. A crit­i­cal point in the re­struc­tur­ing plan is a sig­nif­i­cant re­duc­tion in the num­ber of re­tail stores in or­der to re­align the busi­ness with the chang­ing mar­ket­place en­vi­ron­ment. In par­al­lel, the com­pany will con­tinue to en­hance its dig­i­tal plat­forms. Aerosoles ex­pects to com­plete the re­struc­tur­ing within a pe­riod of four months, while fo­cus­ing ef­forts on ecom­merce, whole­sale and the in­ter­na­tional busi­ness. Aerosoles , for­mally known as Aerogroup In­ter­na­tional Inc , blamed its bank­ruptcy on de­clin­ing mall traf­fic, big in­dus­try­wide mark­downs and a shift to­ward on­line shop­ping, ac­cord­ing to a court fil­ing. New Jersey-based Aerosoles said it would close 95 per­cent of its 78 stores while main­tain­ing four flag­ship shops in New York and its home state. Known for its com­fort­able flats and wedges, it will con­tinue to sell its shoes on­line and at other re­tail­ers and depart­ment stores. The com­pany, once part of sto­ried shoe com­pany Ken­neth Cole Pro­duc­tions Inc , said it ex­pected to com­plete the Chap­ter 11 re­struc­tur­ing, which could in­clude a sale to a third party, within about four months.

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