Aerosoles files Chapter 11
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.