“O.itemList.length” “- this.config.text.ariaShown
“This.config.text.ariaFermé”
Family-owned company Saxon Shoes Inc. this week’s newest shoe store to raise its role to the bankruptcy court amid unprecedented macroeconomic challenges.
On Friday, the family business founded in Henrico, Virginia, filed an application for Chapter 11 coverage in the U.S. Bankruptcy Court. For the Eastern District of Virginia. He has valued his assets at $1 million to $10 million, the same amount as his liabilities, and has between two hundred and 999 creditors.
Learn more about shoe news
Saxon Shoes goes bankrupt
Walmart extends store opening hours: here’s how it helps keep shoppers safe
Americans spent on clothes and shoes in July: this is where they were
“We are in the midst of a restructuring with the number one goal of taking a break,” said Gary Weiner, president and CEO of Saxon Shoes, about his resolve to register an application for Chapter 11. “We go through a complicated retail market, and then we had a pandemic, which has made things go from bad to terrible. When the certainty came, we had to make sure we could survive. Our goal is to make it bigger and stronger”.
Like many other retailers, Weiner said, the spring sales season has never materialized, while distributors are now asking inquiries about fall deliveries. “At this point, autumn is a question mark,” he said, noting the uncertainty surrounding the return to school, as public schools opt for virtual learning. “Most of our suppliers were very accommodating. When you don’t do business for six or eight weeks, it’s billed.”
The company’s largest creditors in the footwear industry are Wolverine World Wide Inc., Merrell’s parent company, and Sperry, to which it owes $72,000; New Balance, more than $46,500; The Rockport Company, $34,800; and the owner of Journeys Genesco Inc., for whom he has an unsecured claim of more than $20,400. It also owes $16,200 to Birkenstock USA LP, plus $18,100 to Ugg and Hoka One Parent Deckers Outdoor Corp.
As the pandemic progresses, Weiner said his attempts to reshape the company were enough to keep it at a healthy pace. After [the launch] of Facebook Live, street collections and non-public purchases persisted in demanding situations. “We couldn’t have tried more than we did,” Weiner said.
While Weiner said dealerships have been flexible when it comes to leasing, its two owners, whether giant developers, have not followed suit. “I don’t need to be indifferent,” Weiner said, because I know they have expenses to pay, too. But we’re a small business and [worth] heaps of millions of dollars. We have complicated discussions with our owners. »
However, he said, he intended to close any of the stores.
Looking ahead, Weiner said, he is cautiously positive for the rest of the year as threats of viral resurgence are looming.
Since COVID-19 took root in the United States in March, creating uncontrollable economic effects, the fashion and footwear sectors have been in the midst of the 2020 bankruptcy wave, and U.S. presentations around the world are on track to succeed for up to 10 years. Major national chains such as J.Crew, Neiman Marcus and JCPenney have already been implemented for Chapter 11 protection, while stores such as Stein Mart and New York and Company have chosen to close a significant, if not the entirety, part of their brick and cement. Fleets.
Subscribe to the FN newsletter. For the latest news, we on Facebook, Twitter and Instagram.