Aerosoles files for bankruptcy to focus on e-commerce business
Women's footwear company Aerosoles has voluntarily filed for protection under Chapter 11 in the US Bankruptcy Court for the District of Delaware as part of its reorganisation plan.
Through the filing, the company is planning to close up to 74 retail stores and focus on its wholesale, e-commerce, and international businesses.
During the process, the company will continue to manage its stores and operate its businesses as ‘debtors in possession’.
Aerosoles interim CEO Denise Incandela said: "This restructuring will enable Aerosoles to become a stronger, more vibrant brand, and position the company for future growth.
"By improving our financial structure and right-sizing our retail footprint, we will be able to refocus our business efforts on the execution of our turnaround strategy.
“We will continue to create products that lead the market in comfort and fashion; grow our ecommerce, wholesale, and international businesses; and promote innovative new marketing campaigns that will drive our business forward."
Subject to approval of the court, the company intends to make payments to suppliers and employees.
The restructuring process is expected to be completed within around four months.
Founded in 1987, Aerosoles is the lead brand of Aerogroup International, which also offers other labels such as A2, Aerology and WhatsWhat.