True Religion is the latest retailer to file for bankruptcy in 2017. Check out some of the other big names.
Women’s footwear chain Aerosoles filed for bankruptcy protection Friday with plans to close a substantial portion of its stores as the retail sector’s woes claimed another victim.
The Edison, N.J.-based chain said it plans to slash debts and reorganize its operations through the Chapter 11 bankruptcy filing, including a “significant reduction” in its retail stores.
It was not immediately clear how many locations or employees would be cut, but the company said it had already begun liquidation sales and plans to keep four flagship stores in New York and New Jersey.
An Aerosoles spokesperson was not immediately available for comment.
The retailer has more than 88 retail stores and its merchandise is sold through thousands of department stores and specialty locations, according to its LinkedIn account.
The company’s slide comes amid a cascade of retail bankruptcy filings in 2017, including mall chains Payless ShoeSource, Rue21, Gymboree and True Religion.
Aerosoles said it expects its restructuring process to last four months, after which it hopes to emerge from bankruptcy.
Bankruptcy gives ailing retailers a chance to escape expensive leases and contracts. But it also presents a risk of liquidation when creditors believe the company is worth more dead than alive.
“For nearly 30 years, Aerosoles has proudly offered consumers stylish and comfortable footwear at a great value,” interim Aerosoles CEO Denise Incandela said in a statement. “This restructuring will enable Aerosoles to become a stronger, more vibrant brand, and position the company for future growth.”
Boston-based private investment firm Palladin Consumer Retail Partners is the majority owner of Aerosoles.
Payless is filing for bankruptcy and will close up to 500 stores.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
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