In the summer of 2022, Swiss retail group Arklyz, the owner of The Athlete’s Foot, announced plans to purchase Baltimore-based retail chain Shoe City from ESCO Ltd, which consists of about 40 retail stores, but the deal never materialized and the U.S. retailer has now filed for bankruptcy. Shoe City plans to liquidate all remaining inventory through GOB sales and close all stores by May 31. An auction to liquidate the leases is scheduled to take place in May, with all unsold leases being rejected. According to reports, the retailer owes Truist Bank $3,164,122 on its secured revolver and another $16 million in unsecured debt, most of which is payable to suppliers. According to the filing, sales from the store closings should bring in enough money to pay off the secured debt, but how much will be left for suppliers remains to be seen.

Topics